Understanding Liquefied Natural Gas in Vietnam

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发布者 越南简报
Written by Mai Chi Tran
作者通過: Mai Chi Tran
Reading Time: 5 minutes 阅读时间: 5 分钟

The Vietnamese government has put Liquefied Natural Gas (LNG) at the center of its Power Development Plan 8 (PDP8) as a means to wean the Southeast Asian nation off coal. Here’s a short overview of the current LNG supply in Vietnam.

Vietnam’s LNG market is very active and growing, especially LNG gas power plant projects and LNG warehouses. But despite growing demand for LNG, this industry still faces some challenges.

Laws and regulations are often inconsistently applied, pricing is volatile, and investor selection is in need of reform. LNG is, however, the cornerstone of Vietnam’s future power production.

According to the PDP8 the burgeoning Southeast Asian nation expects to derive 25 percent, or 37,000 MW of power, from LNG by 2030. This will require huge sector growth and investment.

As a result, there are a broad swathe of opportunities for foreign energy firms.

Vietnam’s LNG imports 越南的液化天然气进口

Domestic LNG projects currently produce just 7 billion m3 per year of usable gas which is not enough to fulfill Vietnam’s current needs. As a result, Vietnam relies heavily on imports.

In 2018, Vietnam imported 55 percent of the total LNG used domestically, by 2020 that number had grown to 70 percent.

According to Vietnam’s gas industry development plan, Vietnam will need to import one to four billion cubic meters (m3) of LNG per year from 2021-2025 and that will then increase to six to 10 billion m3 per year by 2026.

Earlier this year PV GAS signed a contract to import the first shipment of LNG into Vietnam. This will come from Shell and be delivered to the LNG port at Thi Vai in southern Vietnam.
今年早些时候,PV GAS签署了一份合同,将第一批液化天然气进口到越南。这将来自壳牌,并运送到越南南部Thi Vai的液化天然气港口。

Challenges 挑战

According to the latest PDP8, by 2030 LNG will account for a total installed capacity of about 29,700-38,800 MW, or 24-29 percent of total electricity production.

By 2045, the total installed LNG capacity is expected to be about 43,300-46,300 MW, producing 233.6-246 billion kWh and accounting for 20-24 percent of total electricity output.
到 2045 年,液化天然气总装机容量预计将达到约 43,300-46,300 兆瓦,发电量为 233.6-2460 亿千瓦时,占总发电量的 20-24%。

Hitting these targets, however, will be challenging, and being able to utilize LNG to this extent will face some obstacles.

Pricing 定价

The price of imported LNG fuel is volatile. Traded on global markets it is susceptible to the ebbs and flows of global supply and demand. In 2022, for example, prices shot up when Russia invaded Ukraine. Similarly, strong competition in the gas production market in 2021, combined with the Covid-19 pandemic, saw supplies increase and demand drop at the same time, this led to a drop in LNG prices.
进口液化天然气燃料价格波动较大。在全球市场上交易,它容易受到全球供需起伏的影响。例如,2022 年,当俄罗斯入侵乌克兰时,价格飙升。同样,2021 年天然气生产市场的激烈竞争,加上 Covid-19 大流行,供应增加,需求下降,这导致液化天然气价格下跌。

Laws and Regulations 法律法规

Regulations on investment procedures are not applied consistently. There are multiple laws that apply to LNG projects, for example, the Investment Law, Bidding Law, Construction Law, Environment Law, and Planning Law and often these laws conflict with each other.

Investor Selection 投资者选择

Investor selection is important but there is currently no consistent bidding mechanism to select investors for LNG projects, according to Vietnam’s Power Generation Company, a subsidiary of state power provider EVN. Sometimes it is the government who chooses the investor, or sometimes it is assigned to a ministry, or sometimes it is assigned to the province in which the project will be implemented. This can cause confusion for the parties involved, and subsequently delays.

Furthermore, projects in the LNG sector often have many moving parts and require a high level of expertise and cooperation between multiple stakeholders. A lack of qualified investors can often delay a project’s implementation and hinder the project’s development.

LNG projects in Vietnam

Vietnam Gas Corporation (PV GAS)
越南天然气公司 (PV GAS)

State-owned PV GAS operates as a subsidiary of PetroVietnam, which is the national oil and gas company of Vietnam. Its primary responsibility is to explore, produce, process, transport, and distribute natural gas and similar products within Vietnam.
国有PV GAS是越南国家石油公司的子公司,越南石油公司是越南的国家石油和天然气公司。其主要职责是在越南境内勘探、生产、加工、运输和分销天然气和类似产品。

Currently, PV GAS is the only supplier of LNG to the Vietnamese market. It has invested US$500 million in ensuring Vietnam’s long-term gas supply.
目前,PV GAS是越南市场唯一的液化天然气供应商。它已投资5亿美元以确保越南的长期天然气供应。

PVGAS provides services like:

  • Gas extraction: Through its subsidiaries and affiliates, PV GAS has gas extraction projects around the country and is gradually joining international gas extraction and purchase projects. PV GAS works with a number of other parties in the process as well as in distribution.
    天然气开采:PV GAS通过其子公司和关联公司,在全国各地拥有天然气开采项目,并逐步加入国际天然气开采和采购项目。PV GAS在流程和分销方面与许多其他方合作。
  • Gas imports: In order to meet the increasing demand for gas and to supplement the gas supply PV GAS is implementing a number of LNG import projects.
    天然气进口:为了满足日益增长的天然气需求和补充天然气供应,PV GAS正在实施多个LNG进口项目。
  • Gas transportation and distribution: PV GAS has three gas transport and distribution systems to deliver gas to consumers.
    天然气运输和分配:PV GAS拥有三个天然气运输和分配系统,用于向消费者输送天然气。

Foreign firms working with PV GAS
与PV GAS合作的外国公司

Though PV GAS has a monopoly on Vietnam’s gas supply, there are still a number of ways foreign firms can become involved in the sector.
尽管PV GAS垄断了越南的天然气供应,但外国公司仍可以通过多种方式参与该行业。

  • Joint ventures: PV GAS and AES Investment Company signed a joint-venture agreement to establish and operate Son My LNG Warehouse. AES has also been approved by the government to be the main investor in the Son My 2 Power Plant Project which will use LNG.
    合资公司:PV GAS与AES投资公司签署合资协议,建立和运营Son My LNG仓库。AES还被政府批准成为Son My 2发电厂项目的主要投资者,该项目将使用液化天然气。
  • Importing partnerships: In order to import LNG for trial and commercial operation in Thi Vai, PV GAS issued a procurement document, which received interest from suppliers around the world. After a process of evaluation, selection, and negotiation, PV GAS signed a purchase confirmation with Shell to import Vietnam’s first LNG shipment.
    进口合作伙伴关系:为了进口液化天然气在Thi Vai进行试运行和商业运营,PV GAS发布了一份采购文件,该文件引起了全球供应商的兴趣。经过评估、选择和谈判,PV GAS与壳牌签署了采购确认书,进口越南的第一批液化天然气。
  • Strategic alliance agreements: Tokyo Gas Asia, a subsidiary of the Tokyo Gas Company, acquired a 24.9 percent stake in PV Gas D, a subsidiary of PV GAS. They also signed a cooperation agreement whereby Tokyo Gas Asia will use its technology and expertise to develop demand for natural gas and introduce energy-efficient technologies to improve PV Gas D’s operational capacity.
    战略联盟协议:东京燃气公司的子公司东京燃气亚洲收购了PV GAS的子公司PV Gas D 24.9%的股份。双方还签署了一项合作协议,东京燃气亚洲公司将利用其技术和专业知识来开发天然气需求,并引进节能技术,以提高PV Gas D的运营能力。

Thi Vai LNG Storage Project
Thi Vai液化天然气储存项目

Managed by PV GAS, and being developed at Cai Mep Industrial Park in Ba Ria – Vung Tau, this is a major and key project of Vietnam’s oil and gas industry. It is a joint venture between Samsung C&T (South Korea) and PetroVietnam Technical Services Corporation (PTSC).
该项目由PV GAS管理,在头顿巴里亚的Cai Mep工业园开发,是越南石油和天然气行业的一个重大和关键项目。它是三星物产(韩国)和越南石油技术服务公司(PTSC)的合资企业。

The project has a phase 1 capacity of 1 million tons of LNG. By the end of 2022, this phase was 97.08 complete. Phase 2 has a capacity of 3 million tons of LNG, and is expected to be completed this year.
该项目一期产能为100万吨液化天然气。截至 2022 年底,该阶段已完成 97.08。二期产能为300万吨液化天然气,预计今年完工。

Part of this project will also be port facilities for LNG tankers. It will be capable of receiving ships with a tonnage of up to 100,000 tons.

The Long Son LNG Power Center

When the first phase of this project is complete it will have a capacity of 1,200 to 1,500 MW. It is expected to start operating in 2025-2026. The total investment needed is estimated at US$1.75 billion. This project is located on a 110-hectare site, covering both land and sea, outside Long Son Petroleum Industrial Park, in Ba Ria-Vung Tau. This project is currently looking for investors.
该项目第一阶段完成后,其容量将达到1,200至1,500兆瓦。预计将于2025-2026年开始运营。所需总投资估计为17.5亿美元。该项目位于Ba Ria-Vung Tau的Long Son石油工业园外,占地110公顷,涵盖陆地和海洋。该项目目前正在寻找投资者。

LNG moving forward 液化天然气向前发展

LNG is set to play a key role in the development of Vietnam’s power sector. This will involve developing a number of power plant projects around the country as well as importing a huge volume of LNG. In this respect, energy suppliers may find a broad range of opportunities to choose from in Vietnam.

However, there are still some challenges related to pricing, the legal framework, and investor selection that enterprises should consider when looking to invest in Vietnam’s LNG market. These can, however, be effectively navigated with the right advice and support.

For more information on maximizing opportunities in Vietnam’s LNG market contact the business advisory experts at Dezan Shira and Associates.
有关在越南液化天然气市场最大限度地利用机会的更多信息,请联系Dezan Shira and Associates的商业咨询专家。

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