HANOI, Sep 24, 2019, VN Express. State-run PetroVietnam Gas Corporation (PV Gas) and its partners plan to start construction of the country’s first LNG terminal in southern Vietnam next month. The Thi Vai liquefied natural gas terminal in Ba Ria – Vung Tau Province is expected to come on stream by 2022, global energy and commodities information firm S&P Global Platts quoted an official with state-owned oil and gas group PetroVietnam (PVN), PV Gas’s parent company, as saying recently, reported the VN Express.
Gas distribution company PV Gas is in the process of reviewing and resolving remaining design issues of the LNG terminal with consultants and contractors before work can begin, the official said.
The facility will produce one million tons of LNG per year after its first phase is completed in 2022 at an estimated cost of $286 million. The capacity is expected to triple in the second phase by 2023.
PV Gas has recently signed an agreement to supply LNG from Thi Vai to PVN subsidiary PV Power’s proposed Nhon Trach 3 and Nhon Trach 4 power plants in the southern province of Dong Nai. The power plants will have a designed capacity of 600 MW each.
The Nhon Trach 3 and 4 power plants are scheduled to become operational in 2022 and 2023 respectively, and are expected to help ease power shortages in the southeastern region. The estimated cost of the two projects is $1.4 billion, Ho Cong Ky, chairman of PV Power, had said last June.
According to S&P Global Platts, PV Gas currently supplies natural gas to meet 30 percent of Vietnam’s electricity demand and 70 percent of its fertilizer needs, EIA said.
Under Vietnam’s gas industry development plan by 2025, with vision to 2035, the country will build six LNG terminals at a total cost of more than $6 billion.