HCM City (VNS/VNA) - Demand for liquefied natural gas (LNG) will continue to be strong, outpacingdomestic production by 2020 requiring the country to import around one millioncubic metres a year, according to the Ministry of Industry and Trade.

According to Phung Van Sy, general manager of the ministry’s oil and gas division, who spoke at theInternational LNG/Energy Summit held in HCM City on November 12,  Vietnam’snatural gas supply is currently 9-10 billion cubic metres a year.

Since 2015 consumption has been around 10billion cubic metres, 83 percent by the power sector, 11 percent by thefertiliser sector and 6 percent by other industrial sectors.

From 2021 to 2035, the market is expected to grow significantly, reaching 31 billion cubicmetres a year.

The Government has created a legal frameworkfor the development of the LNG industry, and identified priority projects basedon demand and investment promotion.

“The Ministry of Industry and Trade hasconsidered importing LNG from the US to narrow the trade deficit.

“However, the purchase of gas from the USwill be based on the spirit of cooperation. If the US’s gas prices arecompetitive, then Vietnam will import LNG from the US.”

Marie Damour, the US consul general in HCMCity, said Vietnam's Power Development Plan (PDP-8) presented an opportunityfor energy companies to invest in the country.

Due to Vietnam's rapid industrialisationand urbanisation, the Government expected electricity consumption to grow by10-12 percent annually through 2020, she said.

To meet this increasing energy consumption,the country had begun the movement towards LNG, a natural solution to addressthe country's quickly rising energy demands, she said.

“Within this sector are American companiesthat are well known as world leaders for advanced technologies, quality, andexperience.

“As Vietnam moves closer to utilising LNGas part of its energy portfolio, US companies can help support an energylandscape that is investment rich and energy secure, something in the interestof both Vietnam and the US.”

Joe Knierien, executive director ofGlobalinx Group, the event’s organiser, said US companies were greatlyinterested in selling and distributing LNG to Vietnam because they saw greatdemand in the market.

“So we would like to have closercollaboration with Vietnamese companies to assist in the development of theenergy sector and energy security.

“We are very interested in investment indeveloping energy projects here in Vietnam.”

He said his company brought its partners Fluor,Braemar and Emerson, all top LNG companies to Vietnam to evaluate theopportunities available.

Sy said: “Currently the gas market and gas prices in Vietnam are controlledand regulated by the Government through various decisions depending on the wellheadgas price.

“By 2025 the Government is trying to openpart of the gas market, and after 2025 Vietnam will try to fully open its gasmarket.”

Fluor, Braemar and Emerson executivesintroduced their companies and the solutions and services they provide./.