The development of thermal power, including natural gas and liquefied natural gas (LNG), requires specific policies and mechanisms to attract investment as this industry plays a crucial role in ensuring the supply of electricity for the economy and promoting the energy transition, according to insiders.
Assoc. Prof. Dr. Dinh Trong Thinh from the Vietnam Academy of Finance underlined the importance of having a specific roadmap for developing clean energy models in the future in the context that Vietnam's energy demand continues to increase each year, and the energy supply is becoming increasingly scarce.
According to Thinh, gas power sources can quickly connect to the national power grid. Additionally, they produce less CO2 emission.
The development of the LNG industry will help ensure energy security, protect the environment, and maintain sustainable development, he added.
National Power Development Plan VIII for the 2021 - 2030 period with a vision towards 2045 (PDP VIII) has outlined the construction of 13 new LNG power plants with a total capacity of 22,400 MW by 2030, and two more with a capacity of 3,000 MW by 2035.
So far, as many as 13 LNG power projects have been given in-principal approval for investment. Among them, five projects are in the process of implementation.
Notable, Nhon Trach 3 and 4 gas power plants in the southern province of Dong Nai are national key projects under PDP VIII. They have been invested by the PetroVietnam Power Corporation (PV Power), a subsidiary of the Vietnam Oil and Gas Group (PetroVietnam) with a total investment of US$1.4 billion. With a combined capacity of 1,500 MW, they are the first LNG power projects in Vietnam.
Thinh stressed the necessity to address several issues related to infrastructure and policy mechanisms to attract investment sources for developing LNG power projects, saying that attention should be paid to conducting comprehensive planning of LNG import terminal projects to save resources and to promote economic development and the domestic LNG market’s development.
Vietnam needs to promptly perfect the legal framework as a basis for deploying the construction and using infrastructure related to LNG, and ensure transparent and effective management, towards improving confidence of investors in this industry, he noted.
Regulations related to procedures and investment processes in the laws on investment, bidding, construction, environmental protection and planning must be reviewed and amended, he went on.
