The amount of imports is forecasted to increase to 11 million tonnes by 2030 and 13.9 million tonnes by 2035. By the end of this year, the Vietnam National Oil and Gas Group (PetroVietnam) will have supplied more than 100 billion cu.m of gas. Gas for electricity production accounted for 90 percent of the country’s total gas output, generating around 30 percent of total power output. Gas for fertilizer production contributed 70 percent of the total fertilizer demand.
Deputy head of Department of Oil and Gas Exploitation under PetroVietnam Vu Dao Minh said PetroVietnam has been active in promoting the developmental progress of potential gas mines in the basins of Cuu Long, Nam Con Son, and the central and south west regions. The annual gas output has been around 10 billion cu.m.
However, after the year of 2020, current gas mine output will be reduced, thus affecting gas supply. According to Mr.Vu Dao Minh, Vietnam needs to develop new gas resources while importing LNG to ensure that the demand is met.
The development of new gas mines will face high levels of impurities and difficult deep water locations. These factors will affect exploitation, collection, processing costs and pose challenges for the synchronous development of the gas industry, Mr.Vu Dao Minh stressed.
It requires suitable mechanisms and policies to encourage investment into the gas industry. The Government should stipulate different gas prices to customers in the sectors of electricity, petrochemical and industry, Mr.Vu Dao Minh said.
He noted that the policies could promote gas market development, ensuring investment project effectiveness as well as contributing to energy security.
The total gas supply of Vietnam is forecasted to reach more than 268 billion cu.m, while its total demand will be over 344 billion cu.m in the 2017- 2035 period, he added. The gas supply would not be enough for the development of new power plants under the master electricity plan VII.
Deputy Minister of Industry and Trade Hoang Quoc Vuong said the ministry will continue to review and supplement Vietnam’s gas industry master plan by 2020 with a vision to 2035.
The Deputy Minister also required that PetroVietnam propose suitable policies for gas prices to ensure benefits to the Government, businesses and people as a pre-condition for the development of the gas industry.
