State-run PetroVietnam Gas JSC Corporation (PV GAS) on October 28 kicked off the construction of an LNG terminal with capacity of one million metric tons (mt) per year, which is scheduled for completion in 2022.
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South Korea’s Samsung C&T Corp and PetroVietnam Technical Services Corp are engineering, procurement and construction contractors for the terminal following a contract awarded in June.
Costing an investment of US$285 million for the first phase, the terminal will include 180,000 cubic meters (m3) storage facility and accommodate ships carrying freight up to 85,000 tons.
Once operational in 2022, the terminal will serve the operations of Nhon Trach Power Plants 3 and 4 with capacity of 600 MW each, supply LNG for a number of customers and partly feed the country’s LNG thirst, helping ease demand for energy of the southeast region.
Thi Vai terminal is an important link in the chain, continuously operating in Bach Ho and Nam Con Son gas pipeline, with the capacity of 45% of total LPG storage capacity in the country.
Vietnam Oil and Gas Group (PetroVietnam) – the national oil company, through its gas arm PV Gas, supplies natural gas to meet 30% of Vietnam’s electricity demand and 70% of its fertilizer needs.
In 2014, PV Gas signed two LNG sale and purchase agreements with Russia’s Gazprom Marketing & Trading and Anglo Dutch Shell for deliveries into Thi Vai LNG Terminal. This was followed by two preliminary LNG supply agreements with Virginia-based AES Group and Alaska Gasline Development Corp in November 2017.
Vietnam held 24.7 trillion cubic feet of proved natural gas reserves at the end of 2016, up from 6.8 trillion cubic feet (Tcf) in 2011, of which half was located in the northern deep-water areas of the Song Hong basin, according to the US Energy Information Administration (EIA), S&P Global Platts reported.
It currently does not import any natural gas despite growing gas demand for power generation in southern Vietnam and it produced 375 billion cubic feet of dry natural gas in 2016, which was fully consumed domestically, the EIA said citing official data.
