LNG as a solution to energy and environmental challenges
The emerging Vietnam is going through a “green shift” in its production and manufacturing for economic growth in accordance with environmental protection. And PV GAS has what it takes to be pioneering in importing LNG - a bridging source of energy, ensuring the country’s energy security as well as promoting the development of domestic industries.
CO2 emmission: red alert
The expanding population (over 8 billion with 140 newborns per minute) and economic development have led to a higher-than-ever demand for energy. Global energy consumption is forecasted to increase by 1.3% in 2023, higher than the 0.9% estimation for 2022, causing a surge in carbon dioxide (CO2) to alarming levels, about 36.8 billion tons in 2022. It’s a domino effect: severe climate changes and extreme weather disasters (droughts/heat waves/floods/rising sea levels) with uncontrollable frequencies, threatening people’s life!
World leaders, scientists and coporations from every sector have mutually agreed that natural gas (NG) and renewable energy sources can help tackle the underdiscussed problem when it comes to saving the environment. Nevertheless, the latter has not been an “optimal and sustainable” solution for its technical and economical bottlenecks: low availability, seasonal, periodical and geological dependence,.... Therefore, natural gas is more of a capable candidate for reducing carbon emissions. Compared to coal, NG only produces 1/2 the amount of CO2 and 1/10 of other air pollutants (Nox, Sox, dust,...). Gas-fired plants are cheaper and faster to build than coal-fired ones, and more flexible – they can more easily start up or stand down. All this makes them ideal partners for intermittent wind and solar energy.
LNG transmission lines from the import port to Thi Vai LNG Storage
The USA is a typical example of using natural gas for electricity production. According to the US Energy Information Administration (EIA), in 2022, electricity production in the US from gas-fueled plants reached 40%, higher than that of the coal-fired ones, which was only 20% and the rest came from renewable energy (21.5%) and nuclear (18%). Many other countries are also speeding up the transition to lower emmission natural gas: China, Japan and Korea with respectively 10%, 21.3% and 18% of total energy consumption
The coal-to-gas switch is also a top priority in Vietnam as the country longs for economic growth and social welfare, but not at all costs: the Authorities have expressed strong belief in the potentials of LNG importation and consumption. Resolution No. 55-NQ/TW of the Politburo on the orientation of Vietnam’s National Energy Development Strategy, along with the National Power Development Plan (PDP8) by the Ministry of Industry and Trade, has demonstrated the determination in developing the country’s economy as well as fulfilling its commitments at COP26 on striving to net zero targets by 2050.
As the leading enterprise in Vietnam’s gas industry, PetroVietnam Gas Joint Stock Corporation (PV GAS) - a member of Vietnam Oil and Gas Group (PVN), fully understands the urgency to import LNG to make up for the shortage of declining domestic resources, fueling for the energy transition process. Hence, LNG is expected to be imported in Vietnam from July 2023 and supplied to gas-fired power plants and industrial customers in the Southeast Region and South Central Coast.
PV GAS's Thi Vai LNG Storage finally came into operation.
The imported LNG will be distributed to consumers in two ways: pipelines (LNG is regasified and pumped customers via PV GAS’ existing pipeline system) or specialized trailers and cryogenic (superchilled) iso-containers (for distant customers far from the pipeline system).
For PV GAS, LNG will be a new beginning with many prospects, establishing its important position in the long-term transition to LNG-powered generation with many LNG terminal projects being implemented - a new milestone for PV GAS as well as Vietnam’s gas industry can be seen ahead.