Analysis: Vietnam's big bet on LNG may not ease its power crisis

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Analysis: Vietnam's big bet on LNG may not ease its power crisis
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Vietnam received its first shipment of liquefied natural gas this month, a milestone for the energy-hungry country, but various hurdles mean it could take years for imported gas to ease the country's long-running power shortages.

Disagreement over pricing, plant construction delays and lack of supply contracts are dogging the Southeast Asian manufacturing hub's adoption of LNG, hampering its ambitions to make imported gas a major fuel, industry insiders say.to boost electricity supply, laid bare by recent rolling blackouts, has raised concerns among foreign investors about whether Vietnam can remain a reliable option to diversify manufacturing away from China.

The first LNG shipment reached Vietnam last week. The test cargo of super-chilled gas was sent to state-owned PetroVietnam Gas's Vietnam targets LNG-sourced gas generating up to 22.4 gigawatts of power by 2030, enough to power 20 million households and account for nearly 15% of national power supply. But Kaushal Ramesh, an analyst at Oslo-based Rystad Energy, said a realistic expectation was just 5 GW.

near Ho Chi Minh City, is scheduled to begin operation in late 2024. Industry sources say 2026 or 2027 is more realistic.

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