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Norwegian companies seeking local partners in LNG projects

Released at: 16:35, 04/11/2019

Norwegian companies seeking local partners in LNG projects

Photo: Minh Do

Seminar hears of expertise held by Norwegian companies in the LNG field.

by Minh Do

Vietnam has recorded excellent growth of 7 per cent but faced problems in energy supply over the last decade. Norwegian solutions based on technology would help it resolve the supply of liquefied natural gas (LNG) in the country, Mr. Arne-Kjetil Lian, Commercial Counsellor at the Embassy of Norway in Vietnam, told the Norway-Vietnam seminar on November 4 in Hanoi.

The Embassy, the Commercial Section (Innovation Norway) in Vietnam, and the Norwegian Energy Partner is organizing the seminar on liquefied natural gas (LNG), attended by Ambassador of Norway in Vietnam, H.E. Grete Løchen, and over 85 representatives from Vietnam’s LNG sector and the Ministry of Industry and Trade, the Asian Development Bank (ADB), Electricity of Vietnam, PetroVietnam, Petrolimex, PV Power, Genco 1, and key domestic and international players in the local LNG industry.

“LNG is the cleanest fossil fuel,” Ambassador Løchen said in her opening remarks. “In the context of the current energy transition in Vietnam and regionally, LNG represents an excellent alternative to coal thermal power in terms of less air pollution. Norway is among the leading countries in providing high-tech and smart solutions for the entire supply chain in the LNG industry. With much expertise, knowledge and technologies in the LNG industry, Norwegian companies are willing to transfer and share with Vietnam.”

Centered around two themes - LNG to power, and small LNG distribution to industrial end users such as existing power plants, chemical industries, and fertilizer industries, etc. - the seminar aimed at creating a platform for Norwegian companies to seek local partners to invest in and develop advanced solutions and technologies for Vietnam’s LNG industry, including floating LNG terminals and facilities, FSRU (Floating Storage and Regasification), Floating LNG Power plants, small-scale LNG distribution vessels and facilities, and possible financial solutions for LNG projects, etc. It also offered an opportunity to promote active dialogue between LNG producers, consumers, and other stakeholders, with a view to deepening shared understandings of global LNG market trends and exploring cooperation possibilities.

According to Vietnam’s Power Development Plan VII, during the 2025-2030 period, Vietnam will need new LNG power plants with a total capacity of approximately 15,000-19,000MW to meet the rapidly increasing growth in power demand.

Meanwhile, its gas supply is forecasted to fall short of demand from 2020, due to the decline of the country’s gas reserves and the delayed development of new gas fields, which make it necessary to import more LNG to supplement fuel for power plants in the south of the country.

Vietnam’s Plan for Development of the Gas Industry by 2025 with Vision to 2035 forecasts that, during the 2021-2025 period, it will need to import 1-4 billion cu m of LNG per year, which will increase to 6-10 billion cu m after 2026. About 75 per cent of imported LNG will be used as fuel for power plants to secure Vietnam’s rapidly growing economy.

Therefore, the government is now strongly encouraging local and international companies in the LNG industry to cooperate, which makes the LNG sector in Vietnam more vibrant than ever.

The seminar spotlighted the participation of ten Norwegian companies / organizations: Norwegian Energy Partner, DNV GL, Export Credit Norway, Golar Power, Höegh LNG, Kanfer Shipping, LNT marine, LMG marine, LNT Marine, Passer marine, and Network LNG.

“We are only a newcomer in Vietnam so we don’t understand the legal framework and that will be a challenge for us,” Mr. Erik Stavseth, Commercial Manager at Golar Power, told VET. “We are operating with local authorities and enterprises to develop our business in Vietnam.”

Norway and Vietnam share similarities in terms of size and long coastlines and both have an oil and gas industry. However, Norway is a net energy exporter while Vietnam is becoming a net importer.

Norway is among the leading countries in providing solutions for LNG. Norwegian LNG companies cover every step in the LNG supply chain, which includes the production of LNG, LNG regasification, LNG transportation, and the production of power from LNG. In particular, Norway is the first country in the world to develop solutions for floating LNG terminals, which are cost-effective, reliable, and can be delivered within a very short timeline. Norway is also well-known for providing solutions for developing small-scale LNG vessels to transport LNG from LNG terminals to industrial end-users such as small power plants, chemical industries, fertilizer industries, and others.

A similar seminar will be held in Ho Chi Minh City on November 5.

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