10:07 | 10/01/2019 Industry
(VEN) - The US Trade and Development Agency (USTDA) has announced its intention to support the development of a liquefied natural gas (LNG) terminal in the southern part of the country.
With nearly eight percent growth in energy demand this year, the southern provinces face significant power supply challenges. Over the next three years, the southern provinces could face energy shortages of 1.2-1.6 billion kWh per year. To prevent shortages, the south is tasked with building 16 additional thermal power plants by 2030.
Le Van Luc, deputy director of the Electricity and Renewable Energy Authority under the Ministry of Industry and Trade, said Vietnam is at a turning point of the energy transformation process, which is gradually reducing the country’s dependence on coal-fired power plants. The transformation will create conditions for Vietnam to apply modern, clean energy technologies, including solar, wind, and natural gas.
To realize the goal, the USTDA will fund a feasibility study for the Vietnam Electricity (EVN) to aid it in site selection, LNG storage, regasification and infrastructure. This will allow the EVN to plan its terminal and vessel facilities.
US Ambassador to Vietnam Daniel Kritenbrink said US energy companies have been promoting contracts for Vietnam’s development of LNG power. In particular, the US government will promote bilateral cooperation within the framework of “Enhancing Development and Growth through Energy” or “EDGE” initiative. Through EDGE, the US government will provide both financial and technical support, as well as support capacity building to conduct feasibility studies in the fields of wind power, smart grid and solar power plants.
Cooperation with Vietnam will help design the country’s first direct power purchase agreement enabling private parties to enter into a direct contract for the procurement of renewable energy such as wind and solar power.
Ian Steff, US Deputy Assistant Secretary of Commerce for Manufacturing, said Vietnam’s energy market growth represents a great opportunity for US energy and energy-related exports, especially in LNG and advanced energy technologies. Therefore, many leading US energy companies have affirmed their support and investment in Vietnam to help the country meet its energy goals.
Major US energy companies such as AES, Alaska Gasline Development Corporation, Cheniere, Energy Capital
Vietnam, Excelerate Energy, ExxonMobil and Marsh have expressed their willingness to assist Vietnam in achieving
its energy goals.