PetroVietnam said the deal with Qatar aims to serve industrial production needs, ensuring national energy security when entering the dry season.
QatarEnergy is providing PetroVietnam Gas with liquified natural gas between April 12-13 under a new purchase deal of 70,000 metric tonnes, the Vietnamese company announced on Wednesday.
In a statement widely cited by the media, the state-owned Vietnamese company said it would use the shipment for “industrial production and to ensure national energy security.”
The Vietnamese company selected Qatar as the winning bidder after issuing a tender last month inviting energy companies to submit their bids for 1-2 spots of LNG cargoes, according to LNG Prime.
The Thi Vai LNG terminal, the first of its kind and the only one operating in the country will receive the shipment.
Vietnam inaugurated the terminal in October last year to meet the country’s energy needs and ensure energy security. In July 2023, the terminal received its first LNG shipment from industry giant Shell.
QatarEnergy’s shipment is also set to become the terminal’s first delivery this year, according to LNG Prime.
PetroVietnam said the deal with QatarEnergy aims at serving “industrial production needs, ensuring national energy security when entering the dry season.”
The Gulf state is among the world’s top LNG exporters alongside the United States and Australia and is on its way to lead global production through the multibillion North Field Expansion Project.
The multi-billion project comes under Qatar’s LNG endeavours and is split into the North Field East (NFE) and the North Field South (NFS).
NFE is set to ramp up Qatar’s LNG production from 77 to 110 mtpa (metric tonnes per annum) by 2025, as the NFS will increase the production capacity from 110 to 126 mtpa by 2026.
On February 25, QatarEnergy announced a new LNG expansion project, North Field West. The expansion would boost the local LNG production to 142 mtpa before the end of 2030.
Qatar’s Minister of State for Energy Affairs Saad Al-Kaabi had said last November that the Gulf state will provide a substantial 40 percent of all new LNG supplies by 2029.
In 2022, QatarEnergy recorded a net profit of $42.47 billion (QAR 154.6 billion), representing a 58 percent year-on-year increase. This came as the Gulf energy giant became the go-to energy partner in light of the rise in demand for gas from Europe.
Qatar already holds long-term fixed contracts with several Asian customers — Japan, China, India and South Korea — who make up the majority of its exports.
The expansion of LNG production also goes in line with global efforts in cutting emissions, with the Gulf state promoting the gas as a green transitional fuel.
Unlike compressed gas, LNG requires less storage space and reduces greenhouse emissions by 30-40 percent. The gas also remains the cleanest and safest to transport due to its ability to evaporate in the event that it is accidentally released in the process.
