Vietnam bets big on LNG, South China Sea gas fields.
Bangkok Post (CBNB Abstracts)
The 2030 plan of Vietnam to quadruple its gas processing capacity, converting it into its first energy source, indicates a big bet on liquefied natural gas (LNG) imports and its reserves in the South China Sea, despite geopolitical and supply risks. On 15 May 2023, the plan was authorized by the government and would turn Vietnam from a very small gas market player into one of the biggest consumers in the region. LNG imports are expected to increase from nil to volumes that would cover almost 15% of the country's rising energy requirements by the end of the decade. Gas manufactured domestically would be prioritized over LNG, with output predicted to expand by approximately 65% to 15 gigawatts (GW) by 2030 - but its share in the Vietnamese power mix is slated to decline from 13% in 2020 to 10%. By 2035, Vietnam would construct 15 LNG power facilities to process the added energy input, with a minimum of two LNG terminals and almost 12 new sites fired with domestic gas, which would switch to green hydrogen over the following decades. The plan does not reveal the estimated value of LNG imports. Higher prices of gas are projected to continue, according to the Institute for Energy Economics and Financial Analysis (IEEFA). Vietnam presently manufactures natural gas in blocks in the South China Sea. The additional output would be derived from blocks that are closer to the coast of Vietnam, including a smaller deposit controlled by Gazprom and the Blue Whale field managed by ExxonMobil, with additional gas possibly from fields ran by ENI. The plan did not cite imports from Tuna block of Indonesia in the South China Sea, in which Jakarta would export gas to Vietnam starting 2026, although the government anticipates importing undetermined energy to deal with 3.3% of the requirements of the country by 2030. Original Source: Bangkok Post, http://www.bangkokpost.com/.