Opportunity to accelerate gas power development in VN
17:23 | 11/10/2019

VGP – The Prime Minister has recently agreed to assign AES Group (U.S.) to be the investor of the Son My 2 Gas Power Plant Project, which is expected to contribute to accelerating the development of gas power in Viet Nam.

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The Son My 2 gas-fired thermal power project is part of a series of Son My thermal power projects (including Son My 1, 2 and 3) in the central province of Binh Thuan with a total capacity of 4,000 MW. AES Group plans to complete the financial arrangement for the project in 2021, and will start commercial operation of the power plant from 2024.

Using the U.S. capital and technology is an optimal choice at the moment, especially the production of power from liquefied natural gas (LNG) and the US’ famous shale gas and oil technology.

Under the revised 7th power development plan, Viet Nam will have about 15,000 MW of gas power by 2025, accounting for 15.6% of the total capacity of power sources and equivalent to the production of 19% of total power output. The figure will increase to 19,000 MW by 2030, equivalent to requiring 22 billion cubic meters of gas, 50% of which comes from the imported LNG.

According to the Department of Oil, Gas and Coal (Ministry of Industry and Trade), gas supply for power production in Viet Nam stands at 8 billion cubic meters, but the current capability will only be maintained until 2022. From 2023, the gas output brought ashore will decline and there will be a shortage.

Meanwhile, the exploitation of oil and gas in Viet Nam is facing obstacles, and the U.S.’ shale oil is considered a future technology which is capable of filling the gap for the whole world.

AES Group’s acceleration of investment in gas power development will contribute to breaking the structure in a beneficial way, helping reduce commercial electricity prices, while addressing the pressure from gas shortage.

The solar power lesson still remains “hot” when a series of large projects are implemented and are currently at risk of output cut due to the excess of plan limits. This is a paradox that needs to be resolved before Viet Nam wishes to take advantage of high-quality FDI.

By Vien Nhu

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