LNG – CHEAP FUEL SOURCE AND EMISSION REDUCTION

Faced with increasing pressure on global energy demand, finding fuel sources that are both cost-effective and environmentally friendly has become an urgent requirement. In Vietnam, liquefied natural gas (LNG) is asserting its role as a sustainable energy solution, demonstrated by the strong development of infrastructure and the increasingly expanding commercialization process.

WHAT IS LNG?

LNG is a natural gas composed mainly of CH4 (95%) and a mixture of C2H6 (4%) that is cooled to -162°C to turn into a liquid, reducing its volume to 600 times that of its gaseous state. After reaching the point of consumption, LNG can be re-gasified and used in many areas such as power generation, industry and transportation.

BENEFITS OF LNG

1. Competitive price

Thanks to increasingly developed exploitation and transportation technology, LNG prices are becoming very good compared to traditional fuels such as oil, coal and even cheaper than LPG and CNG.

Especially, when gas power plants go into production and storage facilities operate synchronously nationwide. At this time, the LNG supply chain and transportation costs will be very optimal, leading to very competitive LNG prices.

About: LNG Power plant projects in Vietnam

2. Reduce greenhouse gas emissions

LNG is considered a cleaner fuel than coal and oil. When burned, LNG produces about 30-50% less CO2 than coal and significantly reduces SOx (sulphur oxide) and NOx (nitrogen oxide) emissions. This helps reduce air pollution and helps countries achieve carbon neutrality goals.

About: CO2 emission coefficient for fuels

3. Abundant and stable supply

Natural gas fields in the world are very abundant, especially in Russia, Iran, Qatar, Turkmenistan and the United States. At the end of 2014, the world's proven natural gas reserves were 187,100 billion m3, according to BP (British Petroleum) data.

LNG importing countries contribute to maintaining a stable supply with a dense storage system and diverse sources from regions to help stabilize energy security and market prices.

4. Wide application

Thanks to competitive prices and reduced greenhouse gas emissions when burned, LNG is widely used globally in the electricity, heating, heavy industry and transportation sectors. In Vietnam, LNG is mainly used for electricity production, in addition to nitrogen production and industrial production.

With the green development trend and emission reduction policies from the government, switching to LNG is inevitable and not simply a choice for industrial production enterprises.

CHALLENGES

Despite its many advantages, the application of LNG still faces some challenges such as:

High investment costs in storage infrastructure: Storage and regasification equipment must mainly be imported to Vietnam
Competing with renewable energy sources because although LNG is cleaner than traditional fuels such as oil and coal, it still produces CO2 when burned.

Price fluctuations: Vietnam imports LNG completely, so LNG prices will fluctuate according to the world economic and political situation and market demand.

CONCLUSION

LNG is playing an important role in the energy transition, contributing to a green economy and sustainable development. LNG, along with renewable energy sources, helps balance fuel costs and reduce greenhouse gas emissions, protecting our environment.

MORE INFORMATION:

Official 2024 LNG price framework

Factors affecting LNG price

LNG conversion Process

DATA ENERGY COMPANY LIMITED (DATA Energy)

• Consulting, designing, installing, and constructing industrial gas systems.
• Investing in gas systems for factories.
• Supplying LPG, CNG, LNG.