AsemconnectVietnam - Master plan on development of gas industry of Vietnam is to implement objectives in field of gas industry under development strategy of oil and gas industry of Vietnam to 2025 and with an orientation toward 2035 which has been approved by the Prime Minister.
MASTER PLAN ON DEVELOPMENT OF GAS INDUSTRY OF VIETNAM TO 2025, WITH AN ORIENTATION TO 2035
I. Development viewpoints
Master plan on development of gas industry of Vietnam is to implement objectives in field of gas industry under development strategy of oil and gas industry of Vietnam to 2025 and with an orientation toward 2035 which has been approved by the Prime Minister.
Development of Vietnam gas industry closely connect with national strategy and plan of national electricity development in order to effectively use clean fuels, contribute to ensure national energy security, reducing greenhouse gas emissions.
To develop effectively, synchronously gas industry through promotion of domestic resources and promote international cooperation.
Development of gas industry is on principle of saving, efficient, reasonable using domestic resources; deploying import of liquefied natural gas (LNG) in parallel with the collection of new domestic gas source to complement declining gas sources, maintaining capacity of gas supply to consuming households.
To complete infrastructure system of collecting, transporting, processing on the principles of using maximum capacity of existing infrastructure, gradually developing and perfecting infrastructure of storage system, importing and distributing LNG.
To boost investment in deep processing of natural gas, diversify products to enhance using value of gas and effectiveness of oil products in the economy.
To build a system of policy mechanism to gradually shift management models of Vietnam gas industry, gas trading mechanisms look towards free gas market, integrating with gas market in region and the world. Developing gas consumption markets according to market mechanisms which are regulated by the State, encourages contractors and foreign investors to invest in the stage of gas value chain from upstream, midstream to downstream to contribute to ensure long term energy security for the country and implementation of sustainable development policies.
II. Development objectives
To develop gas industry complete, synchronize all the stages, from: exploitation - collectors - transport - processing - storage - gas distribution and import gas products nationwide; ensure 100% collection of gas output of plots / fields which PVN and oil and gas contractors exploiting in Vietnam. Striving to catch national gas output in phase 2016 - 2035 as follows:
- In a period of 2016 - 2020: output of gas reaches 10-11 billion m3 / year.
- In a period of 2021 - 2025: output of gas reaches 13-19 billion m3 / year.
- In a period of 2026 - 2035: output of gas reaches 17-21 billion m3 / year.
On import and distribution of LNG: research, search market and accelerate construction of infrastructure systems for port warehouses which is ready to receive, import LNG with goals for each period are as follows:
- In a period 2021 - 2025 reach 1 - 4 billion m3 / year.
- In a period 2026 - 2035 reach 6 -10 billion m3 / year.
Regarding development of gas markets:
- To continue to develop electricity market which is a key market for gas consumption (including LNG imports) with proportion of about 70-80% of total gas production to meet input gas fuel source to generate electricity.
- To develop petrochemical sector from gas, to increase investment in deep processing of natural gas in order to enhance added value of gas products, creating materials, fuel and materials to serve development of industrial production in domestic, orienting to export, reducing proportion of trade deficit.
- To continue to maintain and expand gas distribution system for industrial consuming households, transportation, urban living households in order to protect environment and enhancing value of gas using. Developing synchronously system of low pressure gas distribution and distribution system of compressed natural gas (CNG) as a prerequisite for development of gas distribution system to provide for transport activities.
- To strive to develop gas markets with scale:
+ In a period of 2016-2020 reaches 11-15 billion m3 / year.
+ In a period of 2021-2025 reaches 13-27 billion m3 / year.
+ In a period of 2026-2035 reaches 23-31 billion m3 / year.
Regarding infrastructure of storage, trading and distribution of liquefied petroleum gas (LPG):
- To expand capacity of existing LPG combining with construction of new LPG to meet domestic demand of around 3.5 to 4.0 million tons / year in 2025 and reaching scale approximately 4.5 to 5.0 million tons / year in 2035, guaranteeing to meet minimum reserve requirements over 15 days of supply.
- To strive to meet the 70% market share of LPG nationwide.
III. Development orientation
1. Northern region
To study solutions, promote collection of gas from small fields, which scatter in the region in order to enhance ability of providing gas for industrial consuming households in northern areas and gradually research, deploying construction of LNG import infrastructure to maintain ability of providing gas for industrial consuming households as gas resources in northern region decline, developing power plants using LNG under national plan on electricity which was approved by the Prime Minister.
2. Central region
- To actively promote development and improvement of infrastructure system of collecting, transporting, processing gas from gas field of the Blue Whale to supply for power plants using gas in central region under national electricity plan which has been approved by the Prime Minister. Developing petrochemical industry using gas from gas field of the Blue Whale after meeting gas demand for power plants. Developing low pressure gas distribution system, production of CNG / LNG at small-scale to supply for industrial consuming households in the region.
- To gradually research, build infrastructure systems of import, distribution of LNG as gas source in region decline and in case of appearing more new consuming households.
3. Southeast region
- To improve infrastructure system of collecting, transporting potential gas fields in order to maintain gas supply sources for the existing consuming households, strengthening exploration activities, mine development to maintain and meet gas demand in the region.
- To build a system of warehouses, port of LNG imports to supplement domestic gas resources which are declining and supply for power plants under national electricity plan which was approved by the Prime Minister.
4. Southwest region
- To improve infrastructure system of collecting, transporting gas from block B & 48/95, 52/97 and small mines in southwest region (Khanh My, Dam Doi, Nam Du, U Minh, ... ) to supply for new power center under national electricity plan which has been approved by the Prime Minister; supplement the existing consuming households in Southwest region.
- To build infrastructure of LNG imports to maintain ability of providing gas for consuming households, developing new power plants using LNG.
1. Solutions on organization and management (policy mechanisms, models)
- To continue to study, modify, supplement, and update legal documents relating to management of Vietnam gas industry in line with current state of development of gas industry in the domestic and international rules.
- To improve management model transformation of Vietnam gas industry toward free gas market-oriented in a period after 2020, step by step toward the State manages only activities of gas industry through system of legal document, market parties will be autonomy in negotiating trade agreements, contract of sale, transportation and gas business.
- To develop policies of reasonable market gas prices, ensuring harmony of interests between the State, enterprises and consumers.
2. Investment solutions
- To publicize the plan, a list of investment projects, encourage all economic sectors at home and abroad to invest in field of gas industry; developing policies of attractive investment incentives for each project type, geographic area, especially for gas mines having small-scale gas, offshore deep water, high levels of CO 2 in Red river area, Phu Khanh, Ma Lay - Tho Chu, Tu Chinh Vung May, Truong Sa - Hoang Sa.
- To promote role of the State in investing in infrastructure system of collecting, transporting and processing gas which have meaningful strategy to encourage organizations and individuals to invest in development of gas industry.
- To promote international cooperation, give priorities of cooperation with tradition partners, the favorable political relation regions, and national oil companies in the region and around the world to attract investment to develop projects of upstream stage.
- To develop and adopt reasonable tax preferential policies to attract foreign investment; issuing policies to encourage domestic and foreign investors to form and implement cooperation projects of LNG production in foreign countries, projects of transportation and distribution in Vietnam and domestic investors to participate in projects of import, distribution of LNG, CNG, projects of production and distribution of clean fuels, ... in order to protect environment.
3. Solutions on financial and capital arrangement
- To strengthen to attract capital of foreign direct investment (FDI) and capital from other economic sectors in the country by diversification of forms of investment, boosting work of investment promotion to attract attention of foreign investors.
- To diversify forms of loans: bank credit, export credit, preferential government loans, issuing domestic and international loan, financial leasing.
- To build good relationship and mutual benefit with traditional commercial banks; expanding cooperation with reputable banks in the region and the world; Government guarantees for loans for key oil and gas projects.
4. Solutions on market
- To do well information work and forecast of information as a basis for orientation of plan development and implementing suitably production and business activities.
- To form offer - production – consumption chain to create close relationships from input to output.
- To search for integration opportunities to facilitate for enterprises with appropriate solutions to increase competitiveness and efficiency in production and business activities; encouraging enterprises to expand cooperation, joint venture and links with foreign partners to expand overseas markets.
5. Solutions on science and technology
- To improve system of database of Vietnam gas industry, regularly updating, evaluate potential, gas reserves across the country. Accelerating application of scientific and technological achievements in exploration and exploitation to ensure to enhancing efficiency, saving natural resources, improving recovery factor and saving gas and other resources, protecting well national resources. Studying and proposing solutions to collect, process and use gas of containing high CO 2, marginal and offshore gas fields. Building a database of Vietnam gas industry and gas industry of the countries in the region and the world.
- To develop synchronously policies of science technology, mounting scientific research and training on production and business practices, updating application of science and technology in oil and gas activities, promoting organizations and individuals to take part in investment in testing new science technology application in developing potential gas projects in Vietnam.
- To strengthen research and development of software of modeling, visualization, optimization, analysis, risk management, investment performance management, market analysis, forecasting, ... Implementing application of information technology, automation of all stages of gas industry.
- To research and implement technology, solutions of deep processing, increase using value of gas and gas products effectively, evaluating possibility of exploitation, collection, imports of coal gas (CBM), gas of hydrate, gas from clay layer (shale gas...).
6. Human resource development solutions
- To enhance training to improve qualifications of existing staff and workers of gas industry, additionally train missing, weak stages.
- To develop strategies and personnel plans; regularly reviewing and assessing current status of human resources on demand of job titles.
7. Solutions on safety, environment and sustainable development
- To adhere strictly provisions of laws on safety, prevention of fire, working conditions, industrial hygiene.
- To develop, update, complete and regularly maintain: plan on rescue prevention, rescue incident of injection wells, cases of accidents and natural disasters.
- To take necessary measures to ensure safety, health, environment for workers.
- To enhance communication, knowledge dissemination, training on safety and environmental protection.
- To coordinate environmental protection measures in gas industry with environmental protection measures in other activities on areas of operation.
- To strengthen international cooperation in order to acquire knowledge, experience, new technology in task of safety - health - environment.
8. Solutions on defense - security
- To strengthen coordination between investors of gas industry works with Ministry of Defense, Ministry of Public Security, Ministry of Foreign Affairs to take initiative and make well task of protecting all waters and national sovereignty, ensure security for deployment of upstream, medium and low source activities of gas industry.
- To increase operation in offshore areas; joint ventures, associating with potential reputable and powerful partners in the world to help protect national island sovereignty.
1. Ministry of Industry and Trade
- To direct to implement master plan on development of gas industry of Vietnam to 2025 with an orientation to 2035, in short term, it should focus on effectively implementing investment projects in a period to 2025 which are outlined in the master plan.
- To function as the main implementer and coordinate with related ministries and agencies to review legal text of oil and gas industry to propose the Government appropriate amendments, creating favorable conditions for gas industry Vietnam to develop.
- To function as the main implementer, coordinate with related ministries and branches to set up and submit the Government to formulate policies of reasonable gas prices, ensuring harmony of interests between the State and enterprises, people and among enterprises to be a basis for stronger development of Vietnam's gas industry.
2. Other ministries and agencies
To organize to implement and specify tasks and solutions relating to authority and functions of assigned tasks.
3. Centrally run provinces and cities’ People’s Committee
People's Committees of centrally run provinces and cities shall coordinate with ministries, the State management agencies and enterprises to build plans on socio economic development ò localities, associating with development of infrastructure of gas industry to support interdisciplinary impact; giving priority to areas which have advantage of deepwater and reasonable land to serve development of gas industry.
4. Enterprises in sector of gas manufacturing, production
To actively set up plans and implement projects in plans matching with production and trading activities of their units.