To proactively embrace Vietnam’s energy transition toward liquefied natural gas (LNG), since 2020, Gas South has been conducting research on a project to supply LNG to both existing and potential customers in the Southeastern and Southwestern regions.
LNG is already a widely traded and utilized fuel across the globe, but it remains relatively new in Vietnam. Therefore, in the course of implementing the LNG supply project, Gas South has carefully studied the relevant Vietnamese regulations and standards, as well as advanced international equipment and technologies, to ensure compliance with legal procedures, safety, and investment efficiency.
During the investment preparation stage, Gas South worked with LNG suppliers and potential industrial LNG consumers to reach gas purchase and sales agreements. At the same time, the company developed an overall LNG supply business plan, which was finalized in Q1 2021. Based on that, Gas South phased the project implementation and prepared technical and economic feasibility reports for LNG supply stations. In the investment implementation stage, Gas South conducted international bidding to select reputable contractors to supply key equipment such as trailers, LNG transport tanks, fixed LNG storage tanks, and regasification systems, completing the import of this equipment in 2022. Simultaneously, Gas South carried out domestic open bidding to select EPC contractors to build and install LNG supply stations for customers. To date, Gas South has completed construction and installation, with several stations ready for test runs, commissioning, and commercial operation, while continuing to build additional stations.
Image: Trailer and LNG transport tank invested by Gas South
The Covid-19 pandemic and the outbreak of the Russia–Ukraine conflict during the project rollout posed major challenges. Economic downturns forced factories to cut production, leading to decreased fuel demand. Meanwhile, construction material prices and LNG prices surged sharply, delaying LNG terminal projects and imports. In response, Gas South adjusted its project schedule accordingly.
Image: LNG supply station at a Gas South customer sit
Today, Vietnam is home to numerous foreign investors operating industrial plants that require clean fuels like LNG. Alongside the global shift toward cleaner, greener energy and Vietnam’s increasing focus on environmental protection, the decline in domestic natural gas supply has made LNG imports essential to offset shortages. All these factors will drive LNG demand higher in the near future, creating opportunities for Gas South’s LNG investment project to thrive.
Together with its existing CNG and LPG products, LNG completes a trio of clean fuel solutions, superior to traditional fuels such as coal and oil. This will enable Gas South to strengthen its competitive advantage by better meeting customer needs while ensuring stable supply and pricing.
--Thanh Hường--
