PetroVietnam Gas will trial the country’s first liquefied natural gas (LNG) terminal in the fourth quarter of this year, the company said, as part of plans to make the fuel a major energy source for the country.

The Thi Vai LNG Terminal in the southern province of Ba Ria Vung Tau is scheduled to start commercial operations from 2023. It will supply two gas-fired power plants, Nhon Trach 3 and 4, which are being built in neighbouring Dong Nai province, the company said in a statement.

“Importing LNG and developing LNG facilities is one of the important measures for national energy security,” PetroVietnam Gas said.

Vietnam, a manufacturing powerhouse that currently generates most of its electricity from coal, is drafting a new national power development plan that includes 22 LNG-fired power plants. These will have a huge combined potential capacity of up to 108.5 gigawatts.

PetroVietnam Gas said it has so far signed eight master sale and purchase agreements with LNG suppliers, adding that talks are also underway with others.

The terminal has an initial capacity of one million metric tonnes per year, which could be tripled afterwards, according to the statement.
However, PetroVietnam Gas also warned that the LNG market is evolving in an “unfavourable manner for buyers” with prices forecast to keep rising strongly in the coming years.
Source: Reuters (Reporting by Khanh Vu; Editing by Kanupriya Kapoor)