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BLOOMBERG
Vietnam is looking to purchase the country’s first liquefied natural gas shipment, the latest emerging nation to rekindle interest in the super-chilled fuel after a drop in prices.
PetroVietnam Gas JSC is in discussions with suppliers about procuring an LNG shipment for this summer to the Thi Vai terminal, according to traders with knowledge of the matter. PV Gas, as the state-owned company is known, is seeking government approval before releasing a tender to purchase a shipment, the traders said.
Asian nations are giving LNG another look after a mild winter and government-led efforts to curb consumption resulted in a rapid drop in spot prices. LNG import plans from Vietnam to Hong Kong were delayed after the global energy crisis last year made shipments too expensive and scarce.
Still, Vietnam’s government has been slow to make policy approvals amid a widespread anti-graft campaign, and it isn’t clear when PV Gas will get the green-light. And while gas prices have slumped, rates are still higher than normal and it may not make much economic sense for some emerging nations to continue purchasing spot shipments.
LNG imports would help Vietnam curb its dependence on coal, which made up nearly half of the power mix in 2021, and reduce emissions. Vietnam has long planned for the fuel to act as a bridge to renewables.
The nation finished construction of its first LNG import terminal, Hai Linh, but operations have yet to begin, according to BloombergNEF. That means Thi Vai is poised to be the nation’s first operating LNG facility.