How Wanted is LNG?
Liquefied Natural Gas (LNG) has become an indispensable source of energy worldwide. Recognizing the pivotal role, it will play in Vietnam's gas industry, PV GAS has been a pioneer in LNG imports, contributing to the national energy security and promoting the development of domestic industries.
Global LNG Demand
LNG is not only an environmentally friendly solution with the potential to effectively replace traditional energy sources but has also become a crucial factor in the global energy transition. According to the World LNG Report 2022, there were 40 importing countries with 19 LNG exporting markets.
The completion of the 1 MMTPA Thi Vai LNG Terminal is realizing Vietnam's goal of becoming a part of the global LNG map
Pioneering countries in transitioning to LNG include the United States, China, and India. These nations have significantly reduced their carbon emissions over the years, opening new prospects for green energy industries and sustainable development, actively participating in environmental conservation. Research indicates that transitioning from coal to gas reduces emissions by 50% in electricity production and 33% in heat supply (according to IEA, 2019). Additionally, gas-fired power plants cost less compared to coal-based ones, with quicker and more flexible construction and operation processes.
The United States stands as a prominent example of natural gas utilization in electricity generation. According to EIA, in 2022, 40% of electricity production in the U.S. came from gas-fired power plants, while only 20% came from coal-fired ones. The remaining portion was originated from renewable energy (21.5%) and nuclear energy (18%). Many other countries are accelerating their transition to natural gas, such as China (10%), Japan (21.3%), and South Korea (18%) in total energy consumption.
In Vietnam, Resolution No. 55-NQ/TW, alongside PDP8 by the Ministry of Industry and Trade, demonstrates the nation's determination to develop its economy in alignment with the commitments made at COP26. The country aims to achieve net-zero emissions by 2050. To realize this goal, LNG importation and consumption is considered as one of the top priorities.
PV GAS leadership regularly conducts on-site inspections and introduces Thi Vai LNG Terminal
PV GAS Marks New Milestone in Vietnam's Energy Direction
Petrovietnam Gas Corporation (PV GAS) is the leading unit of the Vietnam Oil and Gas Group (Petrovietnam) – the flagship of Vietnam's gas industry. With a mission to develop green energy sources, PV GAS has been steadfast and diligent in pursuing LNG import projects for years, meeting the increasing demands of the market. These initiatives help compensate for the domestic shortage and replace environmentally harmful energy sources.
PV GAS successfully completed Thi Vai LNG Terminal after nearly four years of construction, not only establishing the first LNG infrastructure in Vietnam but also serving as a prominent example of the nation's groundbreaking energy sector transformation.
Thi Vai LNG Terminal, with the focal point being a 1 MMTPA LNG Terminal in Phase 1, can accommodate LNG vessels with a capacity of up to 100,000 tons. The key components include a LNG storage tank with a capacity of 180,000 m3 and an annual throughput of 1 million tons in Phase 1, expanding to 3 million in Phase 2. The complex also includes a pressure reduction station, a truck loading station, and connecting pipelines.
Alongside the 1 MMTPA Thi Vai LNG Terminal, PV GAS Vung Tau Terminal holds a special allure within Vietnam's maritime port system.
Designed with a reliability rate of 99.9%, incorporating technology with redundancy levels ranging from 50% to 100%, Thi Vai LNG Terminal has undergone rigorous Due Diligences by LNG majors such as Shell, Cheniere, and Qatar Gas. Once operational, the terminal will ensure safety and a stable gas supply to industrial customers and households.
As part of the LNG-to-Power Project in Binh Thuan Province, Son My LNG Terminal, led by PV GAS, is a key national petroleum project with an estimated total investment of around $1.338B, with a capacity of 3.6 MTPA in Phase 1, expanding to 6 million in the next phase and potentially up to 10 million in phase 3. Son My LNG Terminal will import, process, and supply re-gas LNG to the Son My 1 and 2 power plants, with a total capacity of 4.5 GW, expected to be put into operation from 2027.
The LNG-to-Power project will play a crucial role in driving Vietnam's energy transition and socioeconomic growth, especially in the Central region. Son My LNG Terminal Project has received the official approval of the Binh Thuan Provincial People's Committee for the Investment Policy and Investor Selection for Son My LNG Terminal Limited Liability Company.
Thi Vai 1 MMTPA LNG Terminal, Son My LNG Terminal Project, and a similar LNG terminal project in the North constitute a strategic plan that PV GAS is progressively realizing. These are not only seen as a promising future for PV GAS but also as vital components in leading Vietnam's "Green Energy Journey." PV GAS, through these projects, demonstrates its capability to meet market demands and customer needs, as well as uphold a commitment to harmonizing interests, fostering sustainable cooperation, and ensuring long-term development.