Workers pump gas into shells at the Northern Central Gas Store in Vung Ang Industrial zone, Ha Tinh province (Photo: VNA) Hanoi (VNS/VNA) - Vietnam may have to import gas from 2020 toproduce electricity for the country’s socio-economic development, according tothe Ministry of Industry and Trade (MoIT).
Nguyen Quyet Thang, head of market division at the PetroVietnam GasCorporation, told a conference on November 14 that domestic gas supply is ondecline but demand keeps increasing.
A MoIT report on the mining industry performance in the first half of 2018showed natural gas output was estimated at 5.3 billion cubic metres, a yearlyincrease of 1 percent, and liquefied gas production was estimated at 437,600tonnes, up 18.5 percent year on year.
Meanwhile, gas consumption in 2016-20 isestimated at 11-15 billion cubic metres each year and 13-27 cubic metres for2021-25. Annual gas import is planned at 1-3 billion cubic metres for 2021-25and 6-10 billion cubic metres for 2026-35.
By 2020, the percentage of gas used in power production accounts for 16 percentof the country’s total gas production and it will reach 19 percent by 2025.
Therefore, Vietnam is expected to encounter a shortage of gas supply from 2020,Thang said, adding the country needs to purchase liquefied gas from overseasexporters.
There are now 19 liquefied gas exporters, led by Qatar and Australia. Theworld’s total liquefied gas production is at 266 million tonnes per year andwill reach 360 million during 2020-30.
The International Energy Agency (IEA) on November 13 reported natural gas willreplace coal to be the second largest energy source in the world in 2030 due tocountries’ commitment to lessen environment pollution.
Global gas demand will rise 1.6 percent annually until 2040 and it will be 45 percenthigher than the current demand.
According to Thang, Vietnam needs to invest in its storing infrastructurefirst. The country is building two gas storehouses Thi Vai in Ba Ria – Vung Tauprovince and Son My in Binh Thuan province, which are scheduled to complete in2020 and 2023, respectively.
Ngo Thuy Quynh, MoIT’s head of oil, gas and coal department, told theconference the gas industry has been well developing to meet the market demandand requirements.
Clean energies such as renewable energy and gas-based power are the new trendof the world and Vietnam is a part of that trend in the context that thermalpower production is facing limitations and challenges regarding environmentalpolicies and financial requirements, she said.
However, there are obstacles for gas-based power production especially thepolicy framework, Quynh said, adding the industry is young and unattractive toinvestors for its high initial investment cost.
A harsher legal framework, such as a penal code item, is needed to handlefrauds in the domestic gas market so that the sector can re-gain consumers’trust, settle social security and get healthier, according to Tran Trong Huu,vice chairman of the Vietnam Gas Association.
The most critical issue now is the illegal storage, distribution and occupationof gas products among local sellers, Huu said at the conference.
“Some of them even change the label on the gas shell, replace existing detailswith different ones to release their fake products to the market withoutspending on new shells and shell maintenance and checkup costs,” he said.
This practice has dampened consumers’ confidence in the local gas market andrightful sellers, make the sector unfair, result in tax losses and pose threatsto social security, Huu added.
“Some popular brands like Shell Gas, Total Gas, BP Gas and Thang Long Gas havehad reduced their business size and even quit the Vietnamese market because ofbusiness frauds.”
The problem has remained for 10 years but market regulators have not had anappropriate policy to deal with it, Do Trong Hieu, deputy head of trade anddistribution division under MoIT’s domestic market department said.
To better handle the problem, Vietnam should consider using origin trace toolsand product e-codes to monitor the gas products from the stage of beingimported to the stage of being sold and consumers can use devices to check theproducts’ information quickly, Tran Huu Tuan, director of business developmentat Alttek Global JSC said.
The Government also needs to develop stricter rules targeting distributors andsellers to make sure the market operates transparently without fake productsand any violations must be reported to market regulators, Tuan said.
Penal code should be applied on violations in the gas market as gas productsare highly explosive and exposable, requiring strict checkup and preparation ofshells and distribution stores, Huu said. – VNS/VNA
Nguyen Quyet Thang, head of market division at the PetroVietnam GasCorporation, told a conference on November 14 that domestic gas supply is ondecline but demand keeps increasing.
A MoIT report on the mining industry performance in the first half of 2018showed natural gas output was estimated at 5.3 billion cubic metres, a yearlyincrease of 1 percent, and liquefied gas production was estimated at 437,600tonnes, up 18.5 percent year on year.
Meanwhile, gas consumption in 2016-20 isestimated at 11-15 billion cubic metres each year and 13-27 cubic metres for2021-25. Annual gas import is planned at 1-3 billion cubic metres for 2021-25and 6-10 billion cubic metres for 2026-35.
By 2020, the percentage of gas used in power production accounts for 16 percentof the country’s total gas production and it will reach 19 percent by 2025.
Therefore, Vietnam is expected to encounter a shortage of gas supply from 2020,Thang said, adding the country needs to purchase liquefied gas from overseasexporters.
There are now 19 liquefied gas exporters, led by Qatar and Australia. Theworld’s total liquefied gas production is at 266 million tonnes per year andwill reach 360 million during 2020-30.
The International Energy Agency (IEA) on November 13 reported natural gas willreplace coal to be the second largest energy source in the world in 2030 due tocountries’ commitment to lessen environment pollution.
Global gas demand will rise 1.6 percent annually until 2040 and it will be 45 percenthigher than the current demand.
According to Thang, Vietnam needs to invest in its storing infrastructurefirst. The country is building two gas storehouses Thi Vai in Ba Ria – Vung Tauprovince and Son My in Binh Thuan province, which are scheduled to complete in2020 and 2023, respectively.
Ngo Thuy Quynh, MoIT’s head of oil, gas and coal department, told theconference the gas industry has been well developing to meet the market demandand requirements.
Clean energies such as renewable energy and gas-based power are the new trendof the world and Vietnam is a part of that trend in the context that thermalpower production is facing limitations and challenges regarding environmentalpolicies and financial requirements, she said.
However, there are obstacles for gas-based power production especially thepolicy framework, Quynh said, adding the industry is young and unattractive toinvestors for its high initial investment cost.
A harsher legal framework, such as a penal code item, is needed to handlefrauds in the domestic gas market so that the sector can re-gain consumers’trust, settle social security and get healthier, according to Tran Trong Huu,vice chairman of the Vietnam Gas Association.
The most critical issue now is the illegal storage, distribution and occupationof gas products among local sellers, Huu said at the conference.
“Some of them even change the label on the gas shell, replace existing detailswith different ones to release their fake products to the market withoutspending on new shells and shell maintenance and checkup costs,” he said.
This practice has dampened consumers’ confidence in the local gas market andrightful sellers, make the sector unfair, result in tax losses and pose threatsto social security, Huu added.
“Some popular brands like Shell Gas, Total Gas, BP Gas and Thang Long Gas havehad reduced their business size and even quit the Vietnamese market because ofbusiness frauds.”
The problem has remained for 10 years but market regulators have not had anappropriate policy to deal with it, Do Trong Hieu, deputy head of trade anddistribution division under MoIT’s domestic market department said.
To better handle the problem, Vietnam should consider using origin trace toolsand product e-codes to monitor the gas products from the stage of beingimported to the stage of being sold and consumers can use devices to check theproducts’ information quickly, Tran Huu Tuan, director of business developmentat Alttek Global JSC said.
The Government also needs to develop stricter rules targeting distributors andsellers to make sure the market operates transparently without fake productsand any violations must be reported to market regulators, Tuan said.
Penal code should be applied on violations in the gas market as gas productsare highly explosive and exposable, requiring strict checkup and preparation ofshells and distribution stores, Huu said. – VNS/VNA
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