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BUSINESS REPORT

Into the mix

Curbing pollution and emissions is crucial as climate change increasingly
makes its presence felt, with transitioning from fossil fuels to cleaner,
more sustainable options like LNG among the options available.

| By LINH TONG

nder Vietnam’s National Power by 2050. The structure and proportion of eration, with an anticipated operational
Development Plan VIII (PDP 8), LNG, which is to account for up to a commencement date of 2024 or 2025. Real-
U by 2030, gas-fired thermal power quarter of the electricity structure by 2030, istically though, the development timeline
is to constitute a significant 24.8 per cent further emphasizes this importance. Viet- for a single LNG power project spans over
of total power generation capacity, repre- nam’s current goal is to ensure the pro- eight years, presenting challenges in meeting
senting the largest share in the energy portion of gas-fired electricity is met. the target of constructing 13 LNG power
mix. Thermal coal power, meanwhile, is plants by 2030.
to make up 20 per cent, hydropower 19.5 CHALLENGES ABOUND PDP 8 also stipulates that, in addition
per cent, and onshore and offshore wind PDP 8 outlines ambitious goals for Viet- to the aforementioned 15 projects, various
power 18.5 per cent. nam’s energy sector. By 2030, it envisions potential sites around the country will
Many industry insiders view liquefied the construction of 13 new LNG power undergo further examination as contingency
natural gas, or LNG, as a highly-dependable plants, with 22,400 MW in total capacity. options to any LNG-to-power initiatives
form of natural gas, ensuring safety for both By 2035, two more plants with a capacity that encounter implementation obstacles
people and the planet. It is widely recognized of 3,000 MW are slated for development. or experience delays in development. Under
as the cleanest fossil fuel and boasts the There are currently 13 LNG power projects PDP 8, investors of certain coal-fired ther-
highest economic efficiency. Despite its crit- greenlit for investment, with five actively mal power ventures encountering challenges
ical role in Vietnam’s energy transition, underway, four securing investors, and in capital acquisition may transform these
progress in deploying LNG-importing gas four in the process of selecting investors projects into LNG-to-power endeavors.
power plants remains tardy. The situation at the local level. According to Associate Professor Dinh
is likely to impact the country’s energy secu- Among these, the Nhon Trach 3 and 4 Trong Thinh from the Academy of Finance,
rity goals, including ensuring adequate elec- gas-fired power venture, located in Nhon there are considerable opportunities to attract
tricity supply for daily life, which is a matter Trach district, southern Dong Nai province, investment for the development of LNG
of immediate concern for all. stands as a pivotal national initiative under power, but significant challenges also exist.
“LNG plays a very important role in PDP 8. Spearheaded by the Vietnam Oil Vietnam’s 13 LNG power projects were
Vietnam’s security strategy as well as in and Gas Power Corporation (PV Power), approved by the Prime Minister as part of
the country’s energy transition process,” these two plants boast a combined capacity a list of crucial and prioritized investments
said Mr. Nguyen Quoc Thap, Chairman of of 1,500 MW and require total investment in the electricity sector outlined in Decision
the Vietnam Petroleum Association. It of $1.4 billion. No. 500/QD-TTg, and will be vital sources
plays a particularly significant role in its Significantly, this marks Vietnam’s in ensuring the stable and secure supply
commitment to reaching net-zero emissions maiden foray into LNG-based power gen- of electricity for the national power grid.

30 | VIETNAM ECONOMIC TIMES | MARCH 2024 en.vneconomy.vn