Vietnam gas market long-term outlook H2 2020

Domestic gas supply have dominated Vietnam's gas landscape, supporting the growth of domestic gas demand across fertilizer, industrial and power sectors. We forecast gas demand to grow strongly at 8% up to 2035, and then slowing down as renewables take a growing share of the power fuel mix. However, domestic gas supply availability will peak in early 2030s. Will this impending supply crunch lead to accelerated development of proven resources or will LNG import projects progress further? Key highlights • Gas supply-demand balance outlook to 2050, and the growing role of LNG in the gas supply mix • Southeast Vietnam to start requiring LNG in the 2020s, and North Vietnam by the 2030s. Limited growth in the near-term due to competition with coal-fired power plants, but will pick up towards the long-term. This report presents Wood Mackenzie's view of Vietnam's gas market including our latest supply-demand balance, contract developments, regas infrastructure, market structure and policy.