Vietnam is intensifying efforts to achieve its liquefied natural gas (LNG) targets for 2030, marking a significant shift in its energy strategy.

Landmark LNG Power Plant Operations

The state-owned PetroVietnam commenced operations at its Nhon Trach 3 LNG power plant in late November, with the Nhon Trach 4 plant expected to follow. These are Vietnam's first LNG-to-power plants. With a combined investment of US$1.4 billion and a capacity of 1.6 gigawatts, they are projected to supply 9-12 billion kilowatt-hours of electricity annually, meeting an estimated 60% of the southern Dong Nai province's energy demand.

Strategic Role in National Energy Plan

This development is a key step under Vietnam's amended Power Development Plan VIII (PDP VIII), which identifies LNG as a crucial complement to renewable energy for ensuring energy security. The national target is to increase installed LNG power-generation capacity from the current 1.6 GW (solely from the Nhon Trach plants) to 22.5 GW by 2030.

Government Measures to Overcome Challenges

Acknowledging obstacles such as infrastructure gaps, investment interest, and equipment bottlenecks, the government is implementing supportive policies. These include considering an increase in the power offtake guarantee for LNG projects to at least 75% of annual output for up to 15 years, and reducing the preferential import tariff on LNG from 5% to 2% to encourage investment.

Infrastructure Development for LNG Import and Supply

Vietnam is developing its LNG import infrastructure to support the growing sector. The Thi Vai LNG Terminal, which opened in 2023, is expected to supply the Nhon Trach power plants. Future projects include:

• A planned floating storage and regasification unit with significant capacity, to be deployed by PV Gas.
• The Son My LNG terminal, approved for construction in 2023 in partnership with AES Corporation, though its start-up has reportedly been delayed from 2026 to 2028.

Future Initiatives

Beyond LNG, PV Gas has announced plans to begin pilot production of green hydrogen at its Dinh Co Gas Processing Plant in the first quarter of 2026.