Gas importation

A.  The context and necessity of LNG import

• Given the fact that domestic gas demand has been increasing dramatically while gas supply is forecasted to be declining in the period of 2015-2020, Petro Vietnam Oil and Gas Group (PVN) appointed Petro Vietnam Gas Corporation (PV Gas) to carry out the LNG import project to compensate the unbalance between supply and demand in Vietnamese gas market.  
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• Gas shortage in the South of Vietnam is forecasted to be 3 billion m³ in 2015 and increase to 6 billion m³ in 2020 and over 15 billion m³ in 2025.  Therefore, LNG import is inevitable as well as to materialize PV Gas’ development strategy to 2015 and orientation to 2025, positively contribute to the national energy security.

B.   The objective of LNG import

LNG import project aims to

•  Ensure an adjustable and stable gas supply for domestic demand and the preservation of national non-renewable energy sources for the future. The project also diversifies gas supply sources, fulfills the national energy needs for economic development and contributes to national energy security.
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•  Build and develop imported gas market, gradually bringing domestic gas prices closer to the world’s, reducing CO2 emissions, and contributing to environment protection.

      C. LNG import

Currently, PV Gas  is developing two receiving and regasification terminals which are:

• Thi Vai LNG receiving and regasification terminal located at Ba Ria Vung Tau province, with capacity of 1 mmtpa, expected to come into operation in late 2014. The project aims to supply LNG to industrial customers and independent Power Plants. 
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• Son My LNG receiving and regasification terminal, located at Binh Thuan province, having an initial capacity of 3 mmtpa, expected to come into operation in 2018 to supply to independent power plants in Son My area.

The terminal’s capacity is planed to increase to 6 mmtpa – 10 mmtpa in the period after 2020 to supply gas to customers in South Central and South of Vietnam.