Vietnam sees LNG imports as priority in 2016‐25 gas development plan

Vietnam’s 2016‐2025 gas development plan, which was approved by the government earlier this week, gives priority to LNG imports and cutting LPG imports eyeing higher domestic output instead.

The country will “speed up negotiations with foreign suppliers and infrastructure construction to import LNG for domestic demand,” the government said in a document released Wednesday.

Under the plan, the first LNG import terminal will be built in the southern Vietnam, followed by a second terminal in the north and a third one in the central part of the country.

PetroVietnam Gas general director Do Khang Ninh said last month that the stateowned company would submit a proposal on the location for the first LNG import terminal to the government in May.

It will have an annual capacity of about 3 billion‐5 billion cubic meters in the first phase, which is expected to be complete by 2015, and be expanded to 7‐10 Bcm in the second phase from 2016‐2025, the document showed.

Vietnam also plans to boost investment in domestic LPG projects to “reduce and gradually replace imported volumes,” the document said. It aims to produce 1.6 million‐2.2 million mt/year of LPG by 2015, rising to 2.5 million‐4.6 million mt/year by 2025.

In 2010, Vietnam imported 60 percent of its total requirement of 1.2 million mt of LPG.

The remaining 40 percent was supplied by PetroVietnam’s Dinh Co gas processing plant in the south and Dung Quat refinery in central Vietnam. The country’s LPG demand is expected to rise to 1.3 million mt in 2011.

Vietnam expects to significantly increase domestic production of LPG from its big refining and petrochemical complexes including Nghi Son and Long Son, which will be built over the next few years, according to PetroVietnam Gas.

It is also eyeing a hike in natural gas output to 14 Bcm/year by 2015 and 15‐19 Bcm/year by 2025. Vietnam produced nearly 9.4 Bcm of gas in 2010. The 10‐year plan envisages the development of offshore and onshore gas pipeline systems especially in the south, where demand is the highest.

The domestic gas market is expected to grow to 17‐21 Bcm/year by 2015 and 22‐29 Bcm/year by 2025.

The power sector will continue to be the main consumer, accounting for around 70‐85 percent of the total gas output, the document showed.

To realise these goals, the plan estimates that the gas industry will need an investment of $5.3 billion‐5.4 billion/year over 2010‐2015, and $3.6 billion‐7 billion/year over 2016‐2025.

Tags: Vietnam LNG imports