At COP26, Vietnam made a strong commitment to phase out coal-fired power plants, replacing them with renewable and clean energy sources. The development of liquefied natural gas (LNG) power is expected to help the electricity sector reduce its dependence on coal-fired power, which currently occupies a significant portion of the system, thereby reducing greenhouse gas emissions and moving towards a green economy.

According to the National Power Development Plan to 2030 with a vision to 2045 (Power Plan VIII), by 2030, gas-fired power will account for 24.8% of the total system capacity, making it the largest share in the power source structure. Therefore, the development of gas power aligns with Vietnam’s policy in Power Plan VIII to ensure electricity supply, reduce greenhouse gas emissions, compensate for energy shortages, and ensure a diverse fuel supply. It also provides a backup source when the proportion of renewable energy sources increases, ensuring stable electricity supply.

The development of LNG power improves production efficiency, reduces dependence on coal power, decreases emissions, protects the environment, and supports Vietnam’s sustainable development goals. LNG, being a low-emission energy source, is increasingly used, especially after Vietnam's international commitment to emission reduction following COP21.

Building LNG power projects from now until 2035 is essential to ensure energy security and economic development while realizing Vietnam's commitments at COP26 to achieve net-zero emissions by 2050. To achieve this goal, importing and consuming LNG for power generation is Vietnam's top priority from now until 2035.

Duy Nguyen compiled from Vietnam Financial Times