Energy – LNG And Power Development Plan 8 – PDP 8 – Latest Updates

LNG as a desirable transition fuel?

The Vietnamese Government views LNG as a desirable transition fuel changing. However, it is not due to high prices and market turmoil of recent months but to comply with zero emission objective in 2050 and development of cleaner power sources as Vietnam committed in COP26.

In particular, the draft Power Development Plan (PDP8) sets out a plan of imported LNG being 23,900 MW, equivalent to 16.4% of the total power sources in 2030. This leads to a higher demand of imported LNG than that set out in Resolution No. 55 of the Politburo (import of 8 billion m3 in 2030 and 15 billion m3 in 2045 vs. 14-18 m3 in 2030 and 13-16 billion m3 in 2045). However, the MOIT explained that due to technical determination for adoption of Resolution No. 55, coal-fired power sources still reach 55GW while LNG reaches 22GW. In the draft PDP8, the MOIT has taken into account external expenses to determine the capacity of these sources. Thus, in 2030,