LNG Power: An Opportunity to Increase Imports from the US.

Vietnam’s power system witnessed a historic milestone on April 11, 2024, when electricity generated from imported LNG fuel was fed into the national grid for the first time from the Phu My 3 Power Plant (720 MW).#Vietnam Freight forwarder#freight forwarding#cargo courier service#international shipping companies#shipping service company

According to data from Vietnam Customs, in 2024, the country imported 3.113 million tons of liquefied gas worth USD 2.044 billion. The majority of this gas was LNG and used for power generation.

By 2025, the share of electricity generated from imported LNG will continue to increase as part of the national power system operations. This includes the commercial operation of the Nhon Trach 3&4 LNG power plants (1,624 MW) and the transfer of the Phu My 2.2 Power Plant (720 MW) to Vietnam Electricity (EVN) for management. Unlike before, when Phu My 2.2 operated under a BOT contract and had access to domestic gas sources, it will now rely entirely on imported gas.

According to system operators and LNG power project investors, an LNG power plant with a capacity of 1,500 MW running 6,000 hours per year would require about 1.5 billion cubic meters of input gas, equivalent to approximately 1 million tons per year.#Vietnam Freight forwarder#freight forwarding#cargo courier service#international shipping companies#shipping service company

Currently, Decree 56/2025/ND-CP stipulates the principle of determining the minimum long-term contracted electricity output (Qc) for thermal power projects using imported LNG. Specifically, Qc must not be lower than 65% of the plant’s average annual electricity output and will apply during the debt repayment period, not exceeding 10 years from the plant’s commercial operation date.

Experts note that this 65% Qc is equivalent to about 5,700 operating hours per year. This enables investors to calculate LNG purchase volumes with a clear operational plan to optimize business efficiency.#Vietnam Freight forwarder#freight forwarding#cargo courier service#international shipping companies#shipping service company

In addition to new LNG power plants entering operation such as Nhon Trach 3&4, and the LNG-fueled Phu My 2.2 and Phu My 3 projects, the number of LNG-fired power plants in Vietnam is expected to rise in the near future. Many projects have already received investment approval, including the Hiep Phuoc, Bac Lieu, Long Son, Hai Lang 1, Quang Ninh, and Long An LNG power projects.

Developing LNG gas power in Vietnam: Opportunities and challenges

If LNG power projects proceed as planned, Vietnam’s demand for imported LNG will significantly increase in the coming years.

In 2024, the 3.113 million tons of imported liquefied gas, valued at USD 2.044 billion, came from markets including the United Arab Emirates, Kuwait, South Korea, Indonesia, and Malaysia. However, with demand continuing to grow in 2025 and beyond, the United States—one of the world’s top LNG producers—has become a key source of interest.

As a major entity responsible for gas supply for power generation, in March 2025, PetroVietnam Gas (PV GAS) signed a Memorandum of Understanding (MoU) with ConocoPhillips and Excelerate regarding long-term LNG purchase agreements.#Vietnam Freight forwarder#freight forwarding#cargo courier service#international shipping companies#shipping service company

According to the Ministry of Industry and Trade’s draft amendments to Power Development Plan VIII, by 2030, Vietnam’s total installed capacity of LNG power projects could reach a maximum of 22,524 MW. Between 2032 and 2035, additional LNG power projects such as Long Son and Long An II are planned to come online, with potential for earlier implementation if favorable conditions allow.#freight delivery service#freight and logistics companies#local agent#customs broker#combined truck#crostrade#cfs warehouse#non commercial#cargo#no permit

The involved parties have agreed on principles for cooperation to ensure a stable LNG supply to meet growing electricity demand amid declining domestic gas resources.

For PV GAS, the LNG import agreements with the US will support the national LNG import strategy, which aims to reach 9 million tons per year by 2030 and increase to 15 million tons per year by 2035, with an estimated total value of USD 7.2 billion per year.#freight delivery service#freight and logistics companies#local agent#customs broker#combined truck#crostrade#cfs warehouse#non commercial#cargo#no permit

PV GAS is not the only player in the LNG supply market for power projects. Another company, AG&P LNG—a downstream LNG terminal and infrastructure specialist under US-based Nebula Energy Group—has acquired a 49% stake in the Cai Mep LNG Terminal (Ba Ria – Vung Tau).

The Cai Mep LNG import terminal, valued at USD 500 million, has a capacity of 3 million tons per year and can be upgraded to 6 million tons per year. It is one of only two LNG import terminals in Vietnam as of now, along with PV GAS’s Thi Vai LNG Terminal.#freight delivery service#freight and logistics companies#local agent#customs broker#combined truck#crostrade#cfs warehouse#non commercial#cargo#no permit

Once operational, the Cai Mep terminal will supply LNG to power plants and industrial users in southern Vietnam.

In addition to LNG, there is also potential for importing machinery and equipment from the US to support LNG power projects. A prime example is the Nhon Trach 3&4 LNG Power Project, where GE supplied two equipment blocks, each with a capacity of approximately 800 MW. These included 50Hz 9HA.02 gas turbines—GE’s highest-efficiency turbine technology—STF-D650 steam turbines, W88 generators, once-through heat recovery steam generators (OT HRSG), and the Mark VIe distributed control system (DCS).

GE Vernova currently holds nearly 40% of the global market share for turbines supplied to LNG power projects.#freight delivery service#freight and logistics companies#local agent#customs broker#combined truck#crostrade#cfs warehouse#non commercial#cargo#no permit

Following the success of Nhon Trach 3&4, PetroVietnam Power Corporation (PV Power) and GE Vernova have signed an MoU for equipment and service procurement for other LNG power plants. The Quang Ninh LNG Power Project, which PV Power is jointly developing with foreign partners, is likely to be the next customer of GE Vernova.

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      Mr. Jimmy
General Manager TPG
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