Vietnam Daily News

Ministry promises to prioritise gas supply for electricity production

Written by Dailynews.vn Saturday, 10 December 2011 17:23

At the meeting on 5-year plan of industry and trade sector on December 7, Electricity of Vietnam (EVN)'s general director, Pham Le Thanh, said that in the electricity development plan for 2012, the EVN's gas demand would be 6.6 billion cubic metres while oil and gas sector is meeting only 5.71 billion m3. Thus, in 2012, the electricity sector will suffer lack of 800 million m3 of gas and have to use oil for electricity production. Leader of electricity sector also gave two scenarios on electricity production growth in the next five years. If electricity production growth is at 13 percent, the group can adequately meet the demand in the north and south but the central region may suffer power shortage due to transmission. With the electricity production growth of 15 percent, the total output each year may be up to 11-12 billion kWh and there will be no backup power. "In the short term, it is necessary to supply enough gas for the electricity sector, to ensure production in 2012," Thanh recommended. Minister of Industry and Trade, Vu Huy Hoang, said the government has assigned the ministry to solve the balance problem of gas for electricity production. The ministry will meet to solve in accordance with the government's guidance that in any situation, the gas supply must be prioritised for electricity production. Deputy prime minister, Hoang Trung Hai, said that in the next five years, a big challenge is to balance energy because energy consumption is too big and wasteful. Vietnam is facing gas shortage and will have to import coal from 2015-2016. "The urgent problem is to give priority in gas supply for electricity production" Hai emphasized. Previously, Ministry of Industry and Trade said that EVN may suffer a shortage of nearly one billion cubic metres of gas and will have to bear additional 18 trillion dong loss in 2012 if using oil for electricity production.

Source: www.intellasia.net/news/articles/business/111350445.shtml