Electricity accounts for the largest proportion in 2030
Coal, oil, and natural gas are three fossil fuels commonly used to develop electricity in many countries. In particular, gas electricity, also known as electricity produced from natural gas, most typically LNG (Liquefied Natural Gas), is a type of energy that is expected to help reduce carbon emissions, thereby minimizing negative impact on the environment and atmosphere.
To soon concretize the committed goals of achieving Net Zero by 2050, Vietnam has also identified developing the gas power industry as one of the important goals.
According to Power Plan VIII, by 2030, gas power capacity (including domestic gas power and LNG) will reach 37,330 MW, corresponding to 24.8% of total power capacity, accounting for the largest proportion in the structure. power source. While coal thermal power accounts for 20%, hydropower accounts for 19.5%, onshore and offshore wind power accounts for 18.5%.
With this plan, Vietnam is expected to become a large importer, have a strong influence on the world LNG market and is being sought after by many international LNG suppliers. In addition, gas power also plays a "regulatory" role, compensating for the development of renewable energy sources. This is also the basis for Vietnam to soon concretize its Net Zero commitment by 2050.
According to Dr. Mai Duy Thien - Chairman of the Vietnam Clean Energy Association, unlike renewable energy, LNG gas power has the advantage of being flexible, can be changed when needed, and carbon emissions are less than half that of coal-fired power. . “Liquefied gas power has the ability to reach more than 90% of the capacity factor when necessary, has a fast construction and operation time, can meet power shortages if any, and does not encounter interruptions and dependencies. depends on nature like wind power or solar power" - Dr. Thien commented.
“New trump card”
Not only is the power source accounting for the largest proportion in the power source structure by 2030, LNG gas power also has the advantage of stability and high availability. In fact, this gas is increasingly being used in many developed countries around the world and has become the "trump card" of the new energy trend.
After the 2015 United Nations Conference on Climate Change (COP21), world LNG demand increased significantly.
According to statistics, global LNG demand has increased at an average rate of 6.3%/year, LNG capacity increased from 340 million tons/year (2017) to 453 million tons/year (2022). Strong development of LNG thermal power plants in the future will certainly help the electricity industry develop greener and limit dependence on coal-fired power plants, which account for a relatively high proportion in the current system.
It is no coincidence that a series of large corporations and businesses both domestic and foreign want to invest in LNG gas power projects in Vietnam. In 2020, at the Indo-Pacific Business Forum, Vietnamese and US partners signed agreements worth billions of dollars related to liquefied petroleum gas. AES Group (headquartered in Virginia, USA) signed an agreement worth 2.8 billion USD with PV GAS to build a liquefied gas fuel import port and a gas power plant in Vietnam. Exxon Mobil - an American multinational oil and gas corporation also expressed its desire to invest in port chains, liquefied natural gas exploitation and LNG power plants with the most modern technology in Hai Phong.
Up to now, PV GAS is the first and only enterprise qualified to import and export LNG; At the same time, it owns a complete LNG port warehouse infrastructure system in Vietnam that has been in operation since July 2023. This is the leading unit tasked with leading Vietnam's gas industry.
It is known that in the coming time, PV GAS will actively develop and work with competent authorities to review and remove policy bottlenecks related to mechanisms and infrastructure in the deployment of LNG products in Vietnam.
In particular, focus on implementing the construction of central LNG warehouse infrastructure (LNG Hub) to optimize the country's resources; Develop mechanisms to encourage and promote infrastructure investment, along with specific regulations on price parity transfer mechanisms, volume offtake, and principles on fees, contributing to building a business market. LNG is transparent, fair and sustainable.
