Rising LNG imports in Vietnam and the Philippines reflect growing demand in Southeast Asia
Vietnam and the Philippines recently initiated the import of liquefied natural gas (LNG), reflecting Southeast Asia’s increasing shift towards this alternative energy source.
Vietnam’s first shipment of LNG, a 70,000-tonne consignment from Indonesia, arrived at the Thi Vai LNG terminal in the southern province of Ba Ria-Vung Tau.
PetroVietnam Gas (PV Gas), which oversees the terminal, plans an investment of $8.24 billion by 2030 for expanding storage and distribution systems.
As a part of Vietnam’s decarbonization efforts, the government intends for LNG to comprise approximately 15% of its power generation capacity by 2030.
Similarly, the Philippines started importing LNG a month earlier.
The first shipment was sent to a terminal in Batangas, Luzon, intended for use at a gas-powered plant.
AGP International Holdings managed the procurement, with backing from Osaka Gas and the Japan Bank of International Cooperation.
The wider Southeast Asia region has also seen an increased interest in LNG, with Thailand, Singapore, Malaysia, and Myanmar importing it since the 2010s.
The region’s own natural gas reserves are anticipated to be depleted soon, making the adoption of LNG a necessary measure.
As Southeast Asia’s demand grows, East Asia’s share of global demand is predicted to reduce from 50% to 30%.
Yet, the high costs associated with establishing LNG facilities could pose financial challenges for countries with lower credit ratings.
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