Vietnam plays major role in global LNG market
VOV.VN - Vietnam is on the cusp of becoming a major player in the global liquefied natural gas (LNG) market, technical analyst James Hyerczyk wrote on fxempire.com.
Hyerczyk attributed his argument to Vietnam’s recent approved Power Development Plan VIII that sets ambitious targets for bolstering wind and gas energy capacities.
The market researcher cited Reuters, saying the Power Development Plan VIII requires US$134.7 billion in funding, with part of it to be sourced from foreign investments, including a US$15.5 billion pledge from the group of seven industrialised nations (G7).
This strategic shift towards cleaner energy, backed by substantial financial commitments, underscores Vietnam’s emerging role as a new LNG importer, said the analyst.
Vietnam has yet to import LNG but it has produced about 9 GW of natural gas domestically. According to the Power Development Plan VIII, by 2030 LNG will make up a significant portion of Vietnam’s energy structure, a move that could fuel LNG prices.
By 2030, renewable energy sources like wind and solar are likely to account for nearly 31% of the country energy needs. However, LNG will still make up 24.8% of the total energy production. This persistent demand for LNG, coupled with hefty investments, is likely to sustain global LNG prices at elevated levels over the medium term.
Vietnam aims to realise its carbon neutrality goal by 2050 that requires US$658 billion in funding. Though it heavily invests in renewable energy, LNG is expected to serve as a reliable, cleaner alternative to coal, thereby maintaining its critical role in the global energy market and keeping prices robust.
