On 10 April 2020, the prime minister approved, under Decision No. 503/QD-TTg, a mission to formulate a national infrastructure plan for oil and gas reserves and supply for the 2021-2030 period, with a vision to 2050. In accordance with this decision, on 31 December 2021, the Ministry of Industry and Trade (MOIT) released a draft (“Draft Plan“) for comments from relevant agencies.
The Draft Plan covers two main areas:
The system of crude oil, petrol and gas storage warehouses serving production reserves, commercial reserves and national reserves (excluding (i) raw material and product warehouses of refineries, petrochemical plants and gas treatment plants; (ii) fuel warehouses of power plants; and (iii) internal warehouses of the armed forces)
The system of oil and gas pipelines in the mid-and downstream sectors from supply points to places of consumption (excluding the upstream sector, i.e., gas pipelines from offshore gas fields to the mainland and pipelines supplying gas to refineries, petrochemical plants, gas treatment plants and power plants)
The MOIT views the Draft Plan as a tool for planning future commercial developments in the sector at the national level. Once approved, the MOIT will use it as a reference to appraise and approve projects of all enterprises producing and trading oil and gas in Vietnam to construct oil and gas warehouses and supply pipelines.
This Draft Plan directly impacts stand-alone LNG terminal projects as well as the unbundled structure of gas-to-power projects whether using a tolling model or a merchant model.
The Draft Plan includes an introduction and 11 chapters, and covers the following key items:
Information on existing infrastructure for storage and supply of oil and gas
Forecasts of future market demands for oil and gas in Vietnam
Planned and priority projects in the sector
Estimated total investment capital until 2050
Click here to access the full alert.
Source: CCIPV / Baker & McKenzie Vietnam / Oanh Nguyen / Thanh Hai Nguyen