Vietnam to invest $11.25 billion in oil and gas infrastructure by 2030

Vietnam is set to channel approximately VND27 trillion ($11.25 billion), primarily from non-state sources, into bolstering its oil and gas supply and storage infrastructure by 2030, according to the national planning for the 2021-2030 period, with a vision to 2050.

The investment, which will be largely funded by corporate capital and other lawful sources, is part of a strategic initiative to ensure the country's crude oil and petroleum product reserves can sustain 75-80 days of net imports, with an ambitious target to reach 90 days.

The plan also encompasses provisions to guarantee gas reserves that meet domestic market demand and provide for the energy and industrial sectors.

Under the plan, Vietnam is committed to constructing an additional 500,000 cubic metres of petroleum storage facilities by 2030. New crude oil reserves will be strategically located near oil refineries such as Dung Quat, Nghi Son, and Long Son, with a combined capacity of 1-2 million tonnes.

In terms of commercial reserve infrastructure, the country will continue to utilise its 89 existing warehouses, but expand their capacity to approximately 1.4 million cu.m. Furthermore, 59 new commercial petroleum warehouses will be established across various localities, adding a total capacity of about 5.1 million cu.m.

Beyond 2030, Vietnam plans to continue infrastructure development to increase the capacity of storage tanks to three million tonnes of crude oil. An estimated 581km of the petroleum pipeline system will be upgraded, followed by the construction of a new aviation fuel pipeline from the source warehouses in Ho Chi Minh City, Dong Nai, and Ba Ria-Vung Tau to Long Thanh International Airport warehouses.

According to Vnexpress, the country will maintain the operation of its 16 existing liquid petroleum gas (LPG) warehouses until 2030. Investments will be directed towards the construction of liquefied natural gas (LNG) reserve infrastructure at the Cai Mep Industrial Park in Ba Ria-Vung Tau and Nam Dinh Vu Industrial Park in the northern port city of Haiphong, with a total capacity of about 5.1 million tonnes per year.

This period will also see an expansion of the LPG and LNG storage system to increase capacity across all regions.

PETMAL Oil Holdings proposes $2 billion oil refinery in Phu Yen The Malaysian group PETMAL Oil Holdings Sdn Bhd has proposed a plan to develop an oil refinery worth $2 billion in the Southern Phu Yen Economic Zone.

Vietnamese, Malaysian oil and gas service companies enter joint venture Vietnamese offshore support vessel service provider Hai Duong Petroleum and Marine Corporation (Haduco) and Malaysia’s oil and gas marine service provider RMS Synergy Sdn Bhd (RMS) on May 11 signed a cooperation deal in Kuala Lumpur to form a joint venture between the two companies.

Korean investors to invest $1.5 billion in Haiphong Haiphong has granted the investment registration certificate for four projects with the total investment capital of $230 million, and simultaneously signed an agreement with SKC.