Vietnamese LNG works on politics and price

Hanoi needs energy security. But US LNG can also tick some boxes for its relationship with Washington

Vietnam will select future LNG suppliers for a projected spike in gas import demand based on geopolitics as well as economics, according to asset management firm Energy Capital Vietnam (ECV), which is dealing closely with the Hanoi government. The country’s demand is expected to rise to 31bn m³ by 2035, from 10bn m³ in 2019. Current demand is met from indigenous production, but its largest fields are set to decline and to stop production entirely by the late 2020s to mid-2030s, consultancy IHS Markit estimates. While there is the potential for new domestic reserves to be brought on stream, there is risk of delay, due in part to slow government permitting processes, but also to Chinese territ