Ho Chi Minh City: Vietnam’s push to use liquefied natural gas (LNG) to meet surging electricity demand is well behind schedule, with only one of 18 gas-fired power projects expected to be finished on time.
Of the planned developments – which would have a combined capacity of more than 20 gigawatts – only LNG Hiep Phuoc is on schedule, Industry and Trade Minister Le Manh Hung said at a government meeting last week.
Sixteen of the 18 projects have selected investors, but just two have started construction, Deputy Industry and Trade Minister Truong Thanh Hoai said at the same meeting.
The delays threaten Vietnam’s plan for the super-chilled fuel to make up as much as 12% of its power mix by 2030.
The country only started to import LNG in 2023, but is viewed by the global industry as a major potential growth market.
The problems are part of a wider issue with many generation and transmission projects falling behind schedule.
The Trade Ministry warned last month the country faced the risk of power shortages from next year due to the delays.
Vietnam’s goal of at least 10% annual economic growth through 2030 is adding pressure to the grid, with new factories, technology and infrastructure projects boosting power demand.
The LNG Hiep Phuoc project in Ho Chi Minh City is aiming to begin commercial operations by the fourth quarter of 2028, according to reports in local media.
Of the other 17 planned gas-fired power stations, about five are supposed to be finished before the end of the decade.
Most of the projects are struggling to complete land and site clearance, financing arrangements and power purchase agreements, according to a government account of last week’s meeting.
Acting Deputy Prime Minister Pham Gia Tuc has ordered authorities to establish detailed timelines for each project to identify delays earlier.
The South-East Asian nation remains dependent on coal for its electricity. The fossil fuel accounted for 46% of power generation last year, followed by hydro on 34% and solar with 8%, according to BloombergNEF. — Bloomberg
