10 outstanding events of Vietnam Energy Industry in 2019

In parallel with the spectacular economic development achievements, in the past year, the Vietnam Energy sector also has highlights of both the Government's new policy, remarkable achievements at the regional level and the There is great concern about ensuring long-term energy supply security, as coal and crude oil imports are increasing. The journey to enter the new year - 2020, after analyzing and considering data from specialties (electricity, coal, oil and gas, renewable energy ...), experts from Vietnam Energy Magazine commented that Choose 10 outstanding events of Vietnam Energy Industry in 2019 for your reference.

1 / For the first time, the task of making the Vietnam Energy Master Plan (period 2021-2030, vision to 2050) is assigned by the Government.

With the review and evaluation of the implementation of Resolution 18 of the Party Central Committee on the energy industry development strategy and the main features of the Energy Development Strategy for the 2021 - 2030 period, with a vision to 2045, the Prime Minister The Government issued Decision No. 1743 / QD-TTg on December 3, 2019, assigning the task of making a Master Plan for Vietnam's energy in the 2021-2030 period, with a vision to 2050. This task is also assigned almost concurrently with the task of making the Electricity Planning for the 2021-2030 period, with a vision to 2045 (Electricity Planning VIII).

The first preparation of the Vietnam Energy Master Plan has shown the long-term satisfaction of many experts, energy industry managers on the need to balance, harmonize and mutually support development. Vietnam's coal, electricity, oil and gas and renewable energy sub-sectors.

2 / Total capacity of renewable energy sources (solar power, wind power) exceeds 5,000 MW, ranking first in ASEAN.

With the timeline in 2013 Vietnam has only 46 MW of wind power and 4 MW of solar power (DMT), by 2019 Vietnam has a total of 5,039 MW of capacity of these two sources, increasing by 100 times and accounting for 9.2% of total installed capacity (including 274 MW of wind power and 4,765 MW of solar PV, of which 325 MW is rooftop PV). According to ASEAN Post, Vietnam's solar power source accounts for nearly 44% of ASEAN, far surpassing Thailand as the second country with 2,715 MW. In solar PV sources, the floating solar power project on Da Mi lake with a capacity of 47.5 MWp will also be put into operation in 2019. This is a type of PV that makes use of a small area of the reservoir surface of hydropower projects. - Irrigation, which increases the efficiency of solar thermal radiation due to the cooling of the panels by steam, prevents evaporation, avoids land use and also works in conjunction with the power grid of hydroelectric plants, reducing transmission grid investment costs. The floating solar power on Da Mi Lake is also the only project after 150 MW of the world's largest floating solar PV in Anhui province.

3 / The total power capacity of Vietnam reaches 54,880 MW, the second largest in ASEAN and 23rd in the world.

In the source structure, hydroelectricity accounts for 30.8%, coal thermal 36.1%, gas turbines 13%, oil and other power sources 3.3%, imported 1%. In particular, renewable energy sources - renewable energy (including small hydro, solar, wind and biomass) reached 15.8%. If according to the traditional statistics of other countries, renewable energy includes both large and medium hydropower, then Vietnam has a very high percentage of RE power capacity, accounting for over 46%. In the structure of owners of power plants, EVN and Genco (affiliated and shareholding) account for 53.6%, the rest are other owners and importers. A review of some key parameters according to the VIIth electricity master plan (adjusted) shows that in 2019, the commercial electricity is estimated at 209.4 billion kWh, lower than 2.17%; maximum capacity reaches 38,250 MW (approximating to the Electricity Planning VII - adjusted at 38,415 MW); Source capacity is 1% lower than expected at 55,450 MW. Although a number of large power sources are behind schedule, such as: Thai Binh 2, Long Phu 1, Song Hau 2 thermoelectric plants, the boom in solar, wind power has compensated for capacity. The good signal is that the renewable energy source increases, but it is worrying that the grid situation is not keeping up, causing overload, the lack of standby in the South and the operation is very difficult.

4 / EVN's level 4 online electricity service is provided at public administrative centers or public service portals in 63/63 provinces and cities across the country.

Accordingly, from December 24, 2019, customers only need to visit the website address: www.dichvucong.gov.vn to register 12 electric services: 1 / New power supply from medium voltage grid. 2 / New power supply from low voltage grid. 3 / Pay for electricity. 4 / Change the power use / change the type of meters 1 phase, 3 phase. 5 / Change the location of the measuring device. 6 / Change of electricity use purpose. 7 / Change of electricity use norms. 8 / Change of electricity purchase and sale contract subject. 9 / Change registered information. 10 / Change the form of electricity bill payment. 11 / Extension of Power Purchase Agreement. 12 / Termination of electricity purchase and sale contracts. With these electrical services, when making transactions through the National Public Service Portal, all documents and procedures of customers will be simplified and convenient. This is a remarkable progress of the industry in general and the electricity industry in particular. At the same time, 2019 also shows that Vietnam's 'Electricity Access Index' reached 88.2 / 100 points, increasing by 0.24 points compared to 2018 and maintaining the rank of 27/190 countries and economies in the world. gender and 4th ASEAN region surpassed 2 years ahead of the Government's goals. After 6 years (2013-2019, Vietnam's electricity access index improved by 129 steps, which is the one with the most improvement and is one of the 3 indexes with the best ranking among 10 environmental indicators. Vietnamese business.

5 / Commencement of Vietnam's first LNG Storage at Thi Vai.

On October 28, 2019, at Tan Phuoc Commune, Phu My Town, Ba Ria - Vung Tau Province, Vietnam Oil and Gas Group (PVN) and Vietnam Gas Corporation (PV GAS) held a Ground Breaking Ceremony. constructing the Storage of 1 million tons of imported LNG at Thi Vai. It is expected that LNG Thi Vai storage will provide imported liquefied gas for Nhon Trach 3 and 4 combined gas turbine (CCGT) plant projects with a total capacity of 1,500 MW. This project has been included in the national master plan for LNG port development, approved by the Government in 2014, but it has been delayed for several years due to many reasons. This is the first important milestone in diversifying energy sources of fuel, enhancing security of energy supply in the context that Vietnam has become a net energy importer since 2015. Also this year, the AES Group (USA) was approved by the Government of Vietnam to invest in Son My 2 Gas Power Plant (3 x 750 MW) and LNG Gas Import Depot (LNG) Son The US, expected to be completed by 2024 - 2025, continues to mark the fact that LNG will gradually play a significant role in Vietnam's energy structure.

6 / Summary of 10 years of successful operation of the East Sea 1

The East Sea project 01 comes from 2 blocks of Hai Thach - Moc Tinh oil and gas previously signed with foreign companies. Later, 2 lots were merged and operated by BP Company and Vietnam participated in a small part through PetroVietnam Exploration Production Corporation (PVEP). In 2009, PVN took over the East Sea 01 from BP Company. With the courage and effort, closely guided by PVN, Bien Dong Petroleum Operating Company (BIEN DONG POC) and contractors are PetroVietnam Service Joint Stock Corporation (PTSC), Vietnam-Russia Joint Venture ( Vietsopetro), PetroVietnam Design Consulting Corporation (PVE), PetroVietnam Drilling and Services Corporation (PV Drilling) have carried out all design, manufacturing, construction and drilling, strengthening design and manufacturing capacity, qualification capacity of the team. The result of the rig and mining rig at Hai Thach - Moc Tinh mine, manufactured by us, has met all of the most stringent technical requirements, absolute safety, and completely competitive. be in this area in the region and in the world. East Sea 01 has many outstanding features: First: Being evaluated as the most effective of PVN. In the past 10 years, absolutely safe exploitation of more than 10 billion m3 of gas and more than 17 million barrels of condensate; The total revenue has reached more than 2.8 billion USD over the total investment and operating cost to date is more than 2.9 billion USD. Second: This is an oil and gas project completely designed, built and operated by Vietnamese people. Tuesday: The furthest away from the mainland (320 km from Vung Tau). Fourth: Mining oil - gas at the deepest level (145 meters of water). Fifth: The geological structure in these two fields is the most complex and difficult in the world - No oil company dare to exploit gas and oil at a depth of nearly 4,000 meters, with 850 atmospheres and up to temperatures. 1,750C. Sixth: The largest construction equipment volume ever (total weight of Hai Thach and Moc Tinh mining rigs and a gas processing platform is 70 thousand tons).

7 / The Vietnam Oil and Gas Group was unanimously assigned the task of ASCOPE Secretary for the period of 2019-2024.

The 45th ASEAN Council on Petroleum (ASCOPE) meeting was successfully hosted by the Vietnam Oil and Gas Group in Hanoi on November 29, 2019. This is a forum for leaders. senior ASEAN oil companies on topical issues such as: Global energy transformation, challenges for sustainable development and solutions to promote energy transformation for sustainable development. The main theme of this year's session is "Regional cooperation for sustainable development". Attending the meeting were the heads of oil and gas companies / state management agencies in petroleum of 10 ASEAN member countries. For the first time in history, PVN was unanimously assigned to be the ASCOPE Secretary for the period of 2019-2024, showing the trust and support of all member countries.

8 / Implementation of Sao Vang Dai Nguyet and Nam Con Son 2 gas pipeline project chain phase 2 (NCS2).

There are 2 parallel projects in this series of projects that have launched the scope of work since October this year: Firstly, the project of gathering and transporting gas from Sao Vang - Dai Nguyet field, including the pipeline from Sao Vang compressing rig connected to the existing NCS2 pipeline, and connecting with Thien Ung - Dai Hung field to collect, transport Sao Vang - Dai Nguyet and Thien Ung - Dai Hung gas fields to NCS2. Secondly, NCS2 gas pipeline phase 2 is a 118 km pipeline connected to the pipeline phase 1 completed in 2015 to complete Nam Con Son 2 pipeline, bringing the gas of the mentioned fields to the shore. connected to a gas processing plant. It is expected that when the project is completed by the end of the third quarter of 2020, the gas output will be about 2-3 billion m3 / year ashore, supplementing the gas source for the Southeast region. The NCS2 and Sao Vang Dai Nguyet gas pipeline project series plays an important role in the task of synchronously developing the infrastructure of Vietnam's gas industry, while adding significant gas resources in many gas fields. is currently in a period of rapid decline.

9 / The import of coal and oil has increased dramatically, which shows Vietnam's increasing dependence on energy imports.

Vietnam's economic growth has exceeded the initial estimate of 6.6% - 6.8%, up to 7.02%, leading to growth in energy demand, especially demand for coal and oil. mines. Raw coal output is low compared to the adjusted 403/2016 coal plan approved under the Decision No. 403/2016 / QD-TTg dated March 14, 2016 of the Prime Minister. This is one of the main reasons for the surge in coal production. The total coal output of the whole industry in 2019 is estimated at 47.3 million tons, of which underground coal output is about 28 million tons, accounting for 59.2%. Thus, compared with the adjusted coal plan 403/2016, the whole industry's raw coal production decreased by 9 million tons, of which the underground kiln decreased by more than 6 million tons. The main reason for the coal production not meeting the output targets of the 403 Planning is due to the fact that the coal resources and reserves are in fact not sufficient as expected in the 403 Plan. Coal imports, in the first 10 months of 2019, more than doubled from 2018 to 36.8 million tons. It is estimated that in the whole year of 2019, the coal import volume will reach about 42-44 million tons, surpassing the import coal milestone of 40.3 million tons set for 2020 in the Vietnam Coal Industry Development Planning to 2020, with Considering the prospects to 2030. Thus, from 2019, the coal import volume will be balanced with the domestic coal output in the domestic coal market, marking the beginning of a new phase of the domestic coal market. gradually tilted toward imported coal. Accordingly, the production and consumption of coal will comply more strictly with the market mechanism. Crude oil imports have increased by 80.6% over the same period, to 6.8 million tons in the last 10 months. It is estimated that the whole year of imported crude oil production will reach over 8 million tons.

10 / National Program on economical and efficient use of energy in the period of 2019 - 2030 (VNEEP 3).

Recognizing the importance of energy saving, energy security, climate change response and sustainable development, Vietnam has actively implemented the National Target Programs on economical energy use. , effective (VNEEP). Accordingly, the VNEEP 1 program (2006-2010), the energy savings achieved 3-4%, equivalent to 4.9 million TOE; As a result of the VNEEP 2 Program (2012-2015), the energy savings achieved is 5.65%, equivalent to 11.2 million TOE. Over the years, energy industry experts have analyzed and assessed that: Saving 1 unit of energy consumed can reduce the burden of investment for the state and society to produce 3-4 applications. energy taste, at the same time forming - improving culture, thrifty use habits - energy efficiency for all businesses and people, towards sustainable development. With the review and evaluation of the results of the VNEEP 1 and VNEE 2 Programs, it is identified that the potential in this field is still large, it is necessary to have policies to further promote the economical and efficient use of energy in the state of Vietnam. Vietnam has been transformed into a net energy importer since 2015, on March 13, 2019, the Prime Minister issued Decision No. 280 / QD-TTg approving the National Program on energy use. and efficiency (period 2019 - 2030). The goals of VNEEP 3 are: Achieving energy savings of 5-7% of total national commercial energy consumption (in the period of 2019 - 2025), in which reducing power loss to less than 6, 5%; Achieve energy savings of 8-10% of total national commercial energy consumption (in the period of 2019-2030), in which reducing power loss to less than 6%. In the VNEEP 3, there are specified targets to reduce energy consumption in many economic sub-sectors according to the above stages, and also indicate the main tasks of the Program, mobilizing funding for implementation; while the implementation of the Program has been specifically assigned to ministries, sectors, localities, as well as energy-use organizations and called for the responsibility of the whole community./.

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Source: Vietnam Energy Newspaper (31/12/2019)