Quyết định 60/QĐ-TTg 2017 Quy hoạch phát triển ngành công nghiệp khí

THE PRIME MINISTER

Decision No. 60/QD-TTg dated January 16, 2017 of the Prime Minister on approving the plan for development of gas industry of Vietnam by 2025 with the vision to 2035

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Prime Minister’s Decision No. 1748/QD-TTg dated October 14, 2015 on approving the strategy for developing the oil and gas industry of Vietnam by 2025 with vision to 2035;

After considering the request of the Minister of Industry and Trade,

DECIDES:

Article 1.To approve the plan for development of the gas industry of Vietnam by 2025 with vision to 2035 that represents the following contents:

1. Development viewpoints

Put forward the general plan for development of the gas industry of Vietnam with a view to implementing objectives of the gas industry sector in the strategy for developing the oil and gas industry of Vietnam by 2025 with vision to 2035 which has been approved by the Prime Minister.

Connect development of the gas industry of Vietnam with the strategy and plan for national electricity development in order to make effective use of clean fuel sources and make significant contribution to promoting national energy security and reducing greenhouse gas emissions.

Develop the gas industry in a consistent and efficient manner through capitalizing on domestic resources and enhancing international cooperation.

Develop the gas industry according to the principle that domestic resources should be consumed in an economical, effective and reasonable manner; make arrangement for import of liquefied natural gases (LNG) in parallel with gathering of new domestic gas sources so as to make up for a current decrease in volume of gas sources and uphold the capacity to supply gases to households for consumption purposes. 

Provide completely-built facilities for gathering, transport and processing of gases in conformity with the principle that capacity of the existing facilities should be maximally used, and facilities for storage, import and distribution of LNG should be gradually constructed and improved.

Promote investment in deep processing of natural gases and diversification of products to increase value of gases used and effectiveness of gas products in the economy.

Establish regulatory policies to gradually transform the model of management of Vietnam s gas industry, and regulations on trade in gases directed toward the free gas market and integrated into the regional and global gas market. Expand the market for gas consumption through the state-regulated market mechanism, encourage foreign contractors and investors to participate in the gas value chain constituted by upstream, midstream and downstream segments in order to maintain long-term energy security in the country and implement sustainable development policies.

2. Development objectives

Invest in development of the gas industry sector with all stages which are organized in a complete and uniform manner, including extraction – gathering – transport – processing – storage – distribution of gases and import and/or export of gas products across the country; ensure that gas production produced from blocks/gas fields of PVN and oil and gas contractors operating in Vietnam is fully gathered.    Strive to achieve the gas production volume across the country in the period 2015 - 2035 as follows:

- 2016 – 2020 period: The expected volume of gas production is 10 – 11 billion m3/year.

- 2021 – 2025 period: The expected volume of gas production is 13 – 19 billion m3/year.

- 2026 – 2035 period: The expected volume of gas production is 17 – 21 billion m3/year.

In terms of import and distribution of LNG, carry out market research and discovery activities, and speed up construction of storage facilities and ports to get ready for receipt and import of LNG to reach targets set out in each of the following periods:

- 2021 – 2025 period: The volume of gas to be received and imported is 1 – 4 billion m3/year.

- 2026 – 2035 period: The volume of gas to be received and imported is 6 – 10 billion m3/year.

In terms of development of gas consuming markets,

- Keep on developing the electricity market to make it become the main market for gas consumption (including imported LNG) which accounts for a proportion of approximately 70 - 80% compared with total gas production, and ensure that gas supplies are adequate to meet the demand for input fuels for the electricity generation process.  

- Develop the gas-based petrochemical industry, promote investment in deep processing of natural gases in order to increase the added value of gas products, create raw materials, fuels and substances for domestic industrial manufacturing and exporting purposes, and reduce proportion of the trade deficit.   

- Continue to maintain and expand the system of distribution of gases to households to serve their industrial consumption, transportation and urban living purposes with the intention of protecting environment and raising value attained after using gases. Develop a synchronous system of distribution of low – pressure gases and compressed natural gases (CNG) to create a premise for development of the system of distribution of gases for traffic and transportation purposes.

- Strive to develop a gas market that has the following sizes:

+ 2016 – 2020 period: The volume of gas to be consumed in a gas market is 11 – 15 billion m3/year.

+ 2021 – 2025 period: The volume of gas to be consumed in a gas market is 13 – 27 billion m3/year.

+ 2026 – 2035 period: The volume of gas to be consumed in a gas market is 23 – 31 billion m3/year.

In terms of facilities for storage, trading and distribution of LPG,

- Expand capacity of the existing LPG storage units in conjunction with construction of new LPG storage units in order to meet domestic demands expected to reach about 3.5 – 4.0 million tons/year in 2025 and approximately 4.5 – 5.0 million tons/year in 2035, and satisfy requirements concerning the minimum reserve volume of gas that can be supplied for a period of more than 15 days.

- Strive to hold 70% of the share of domestic LPG market.

3. Development orientation

a) Northern region

Search for solutions, push forward with gathering of gases from small gas fields spread over the region in order to increase capacity for supplying gases to households for their industrial consumption purposes throughout the region, step-by-step study and construct facilities for LNG import to maintain capacity for supplying gases used by households for their industrial consumption purposes in the event of a decrease in the gas source in this region, and invest in development of LNG-fueled power plants according to the national power plan already approved by the Prime Minister.  

b) Central region

- Enthusiastically stimulate and improve facilities for gathering, transportation and processing of gases derived from the Ca Voi Xanh gas field which are supplied to gas-fueled power plants located within the Central region according to the national electricity plan already approved by the Prime Minister.  Invest in development of the petrochemical industry using gases derived from the Ca Voi Xanh gas field after ensuring that the gas demands of power plants have been fully satisfied. Invest in development of the system of distribution of low-pressure gases, manufacture CNG/LNG on a small scale which is supplied to households for their industrial consumption purposes.

- Gradually study and build the infrastructure system for import and distribution of LNG in the event that there is any decrease in the gas source in the region and new household consumers appear.

c) Southeast region

- Improve gas gathering and transportation facilities at potential gas fields in order to maintain an adequate source of gases for existing households uses, push forward with gas field prospection, exploration and development activities in order to ensure sufficient gas supplies in the region.

- Embark on construction of storage facilities and ports for import of LNG to make up for a decrease in domestic gas supplies and meet the demands of power plants according to the national electricity plan already approved by the Prime Minister.  

d) Southwest region

- Improve the system of facilities for gathering and transportation of gases mined from Block B & 48/95, 52/97 and other small gas fields to the Southwest (including Khanh My, Dam Doi, Nam Du, U Minh, etc.) which are supplied to newly-established Electricity Centers according to the national electricity plan already approved by the Prime Minister; generate supplementary gas supplies to the existing household consumers in the Southwest region.   

- Build facilities for import of LNG to maintain capacity for supplying gases to household consumers, invest in construction of newly-built LNG-fuelled power plants.   

4. The portfolio of main investment projects in the gas industry

a) Main gas infrastructure development projects

- Northern region:

+ 2016 – 2025 period:

+ 2026 – 2035 period:

- Central region:

+ 2016 – 2025 period:

+ 2026 – 2035 period:

- Southeast region:

+ 2016 – 2025 period: