Thi Vai LNG Terminal: Reflecting on 16 Years

For over three decades, PV GAS has maintained its leading position in Vietnam's gas industry, as the flagship of PVN. However, its journey toward green energy has been a long and challenging one, beginning with the idea of importing LNG first conceived in 2007. Over 16 years, PV GAS has not only endeavored to ensure national energy security but has also been passionately committed to the energy transition. In the near future, PV GAS will inaugurate Vietnam's first and largest LNG terminal, affirming LNG will seamlessly integrate into PV GAS' value chains.
 

Up to now, PV GAS has proven its prowess and reliability on the "green energy journey," as the first and only entity in Vietnam engaged in both LNG import and export. Let's recap the significant milestones in PV GAS' 16 years of bringing LNG into Vietnam.
The Very Beginning

Liquefied Natural Gas (LNG) has been a staple in many countries, such as Qatar, Japan, Russia, and Australia. Its cleaner nature, coupled with high efficiency offers flexibility in meeting energy demands. LNG helps alleviate pressure on domestic sources, diversify energy supplies, reduce energy security risks, and opens avenues for socio-economic development.
Aligned with global trends and considering the sharp decline in domestic resources, importing LNG has long been seen as a prudent step. Pioneering this mission, PV GAS initiated research and planning to bring LNG to Vietnam as early as 2007. The company collaborated with reputable entities such as Wood Mackenzie and the World Bank, along with LNG majors, to assess the LNG market.

PV GAS established its branch, namely PV GAS LNG. It is to handle LNG and condensate import/export operations, gas product transportation services, and storage. Subsequently, PV GAS meticulously outlined investment strategies, creating a comprehensive roadmap for importing and trading this new energy source in Vietnam. 
However, importing LNG posed immense challenges due to its complex technological requirements and substantial investment. Moreover, at that time, Vietnam lacked specific policies or mechanisms regarding the handling of LNG, making the endeavor even more intricate.

The Investment and Construction Phase

After nearly 10 years of completing procedures, PV GAS commenced the 1 MMTPA Thi Vai LNG Terminal project with a Phase 1 capacity of 1 MTPA. It was designed and constructed with the world's most advanced technologies, by top contractors. The Terminal features primary components such as a LNG storage tank with a capacity of 180,000 m³, a truck load station, a pressure reduction station, and connecting pipeline systems.

Groundbreaking ceremony for the 1 MMTPA Thi Vai LNG Terminal

However, it was during this time that the Covid-19 pandemic began to emerge and subsequently escalated, creating numerous barriers. European, American, and East Asian countries closed or restricted offices, and factories, affecting the each and every stage of the progress. Particularly, when the pandemic intensified within the country, construction work and commissioning encountered delays due to the inability to mobilize machinery, equipment, and especially human resources to the construction site. Nevertheless, with the efforts of PV GAS employees and Samsung Engineering, the project was completed with technical excellence.

The Commissioning of Thi Vai LNG Terminal

In 2023, several significant milestones were achieved as all preparation stages were successfully accomplished. PV GAS released the tender documents for LNG procurement to facilitate commissioning and commercial operations at the 1 MMTPA Thi Vai LNG Terminal. 

The Ministry of Industry and Trade issued a certification decision accrediting PV GAS as the first and only qualified trader for LNG import and export in Vietnam. This marked a new development for PV GAS in the gas business sector. Then, the company officially signed a Confirmation Notice with Shell - a global energy corporation and leading LNG supplier in the world, for the first LNG delivery to Vietnam.

Subsequently, PV GAS successfully introduced the first gas flow into Thi Vai - Phu My pipeline, completed Low-pressure Gas Distribution Station, connecting it to the LNG Terminal to supply low-pressure (25 barg) re-gas LNG to customers in Cai Mep Industrial Zone, Phu My 3 Industrial Zone, and neighboring areas. The company also took over Jetty No. 1 at the PETEC Cai Mep Port from PETEC. This whole LNG chain, invested and upgraded by PV GAS, was designed to accommodate LNG vessels weighing up to 100,000 DWT.

The first LNG vessel to arrive in Vietnam was named Maran Gas Achilles, which underwent a transoceanic journey, docking at Thi Vai Terminal and completing the unloading process in approximately 7 days, followed by the successful completion of commisioning.

The first LNG vessel docking at Thi Vai LNG Terminal

In the near future, the Thi Vai LNG Terminal will be inaugurated and officially operational, transforming the entire PV GAS Vung Tau Terminal into a highly valuable asset, ensuring continuous supply to existing customers, new clients, power plants, etc., thereby contributing to the realization of the Party and Government's goals and directions for the national energy sector and gas industry.