Hanoi (VNA) - Vietnam is on the cusp of becoming a major player inthe global liquefied natural gas (LNG) market, according to an article posted on the USwebsite nasdaq.com on October 3.

The author James Hyerczyk wrote that this belief stems fromVietnam’s recently approved eighth Power Development Plan (PDP8), which setsambitious targets for bolstering wind and gas energy capacities.

He cited information for Reuters that the plan will requirea monumental 134.7 billion USD in funding, a portion of which is expected fromforeign investments, including a 15.5 billion USD commitment from the G7nations.

This strategic shift towards cleaner energy, backed bysubstantial financial commitments, underscores Vietnam’s emerging role as a newLNG importer.

In the immediate term, Vietnam’s nascent focus on LNGsuggests a notable increase in global demand. The country currently has no LNGimports but has produced about 9 GW of natural gas domestically. PDP8anticipates that by 2030, LNG will form a significant portion of Vietnam’senergy matrix, a move that could push LNG prices upwards.

By 2030, renewables like wind and solar are slated to cover nearly 31% ofVietnam’s energy needs. However, LNG will still make up a significant 24.8% ofthe total energy production. This persistent demand for LNG, coupled with heftyinvestments, is likely to sustain global LNG prices at elevated levels over themedium term.

Looking further down the road towards 2050, Vietnam aims forcarbon neutrality. Achieving this lofty goal will necessitate up to 658 billionUSD, according to government estimates. Even as Vietnam heavily invests inrenewables like wind power, LNG is expected to serve as a reliable, cleaneralternative to coal, thereby maintaining its critical role in global energy dynamicsand keeping prices robust, wrote James Hyerczyk./.