The power industry plays an important role in the socioeconomic development of not only Ba Ria-Vung Tau but also the southern key economic region.
The province will continue to focus on gas-fired power projects as the ‘key’ factor while developing renewable energy, especially offshore wind power.
At the end of October, the first phase of Thi Vai LNG (liquefied natural gas) Warehouse project invested by Vietnam Oil and Gas Corporation (PVGas) with a total investment of around US$274 million and a capacity of 180,000cu.m, and an average LNG storage capacity of one million tons per year was completed.
The investment procedures for the second phase of the project with an expected annual storage capacity reaching three million tons have also been expedited.
Earlier, PV Gas imported 70,000 tons of LNG worth about US$35 million. Up to now, the warehouse operation ensures absolute safety.
In addition, Hai Linh LNG warehouse project, with an annual capacity of about 3 million tons, is currently in the development pipeline by Hai Linh Co., Ltd.
Such investments in storage facilities to bolster local LNG import capacity and offset the expected offshore gas shortage after 2023 aim to ensure supply for production, especially the province’s power sector in the near future.
According to experts, LNG-fired power offers multiple advantages such as flexibility and lower carbon emissions compared to coal-fired power; therefore, it is relatively environmentally friendly.
Large-scale LNG storage projects have removed concerns about fuel shortages, helping the Ba Ria-Vung Tau gas power industry continue to become the province’s key energy sector.
Le Van Danh, deputy director of the provincial Department of Industry and Trade, revealed that local power generation capacity is about 4,909MW, accounting for about 7 per cent of the total national power capacity, contributing about 33.5 billion kWh/year to the national power system, accounting for about 13 per cent of national production and import output.
In terms of structure, gas power sources with a capacity of 4,386MW account for a lion’s share of 90 per cent of the total capacity. The remaining sources are mainly covered by solar power with a capacity of nearly 510MW (including rooftop power), accounting for about 10 per cent.
Along with the large and stable gas power projects, currently the Department of Industry and Trade is working with a consulting unit to prepare a pre-feasibility study for Long Son LNG Thermal Power Plant project for submission to the Provincial People’s Committee for approval.
Then it shall be submitted to the Ministry of Industry and Trade and the prime minister for investment policy approval. The project is expected to reach a capacity of 1,500MW and will come into operation in 2026-2030.
Offshore wind power for the future
The action programme No. 10-CTr/TU dated October 2021 of the provincial Party Committee’s Standing Committee on implementing Resolution No. 55-NQ/TW of the Politburo on Vietnam’s national energy development strategy to 2030 has determined the leaders’ perspectives on developing synchronous diverse energy types; prioritising renewable, new, and clean energy sources.
Aside from developing large-scale gas power projects, Ba Ria-Vung Tau aims to prioritise the development of offshore wind power to create environmentally friendly renewable energy sources while saving on land.
The potential capacity of offshore wind power is about 14,000MW. The province will make efforts to promote offshore wind power projects in Ba Ria-Vung Tau Province.
The PetroVietnam Technical Services Corporation (PTSC)-Sembcorp (Singapore) JV has been granted a survey licence to become the first and only enterprise licensed by the Ministry of Natural Resources and Environment to deploy monitoring, investigation, survey and evaluation of resources for developing offshore wind power projects.
The JV shall deploy wind measurement as well as marine and geological surveys in some offshore areas of Ba Ria-Vung Tau to collect necessary data to expedite investment procedures and project deployment.
According to Le Manh Cuong, PTSC’s general director, Ba Ria-Vung Tau has great advantages to become a service supply centre for offshore wind power projects, and that the company has signed an export contract that could bring a significant value in offshore renewable energy.
This not only creates a historic turning point for PTSC in developing new services, but also enhances its prestige and brand, as well as putting Vietnam’s name on the world offshore renewable energy map.
“PTSC has been participating in more bidding packages and conducting research to implement more projects in both Vietnam and countries around the world. The projects have increased in both scale and volume,” said Cuong.
To implement the projects, PTSC needs a large supply of high-quality steel and engagement of diverse businesses, particularly those in the province.
