Sluggish LNG imports expected in the Philippines and Vietnam

The Philippines and Vietnam are poised to become LNG importers this year. The Philippines has two regasification projects set to start in 2023: Philippines LNG, operated by Atlantic, Gulf & Pacific Co.’s subsidiary Linseed Field Power Corp., and First Gen Corp.’s Batangas LNG project. In Vietnam, Petrovietnam Gas Joint Stock Corp. (PV Gas)’s Thi Vai regasification project has completed construction of the first phase and is targeting to commission in the third quarter of 2023.

In the Philippines, the declining Malampaya gas field increases the dependence on LNG imports to meet the country’s gas demand. However, the cancellation of the power supply agreement between Meralco and San Miguel Corp. poses some uncertainty on future gas dispatch.

In Vietnam, LNG demand is forecast to be stymied in the short term by the absence of power purchase agreements and higher dispatch from renewables. Gas offtake has fallen, owing to the coal overbuild and the large influx of renewables, which reduces LNG requirements.

Over the next few years, without stable LNG supply from long-term contracts and until new combined-cycle gas turbine (CCGT) plants come online, LNG offtake is forecast to be sluggish in both countries. Nevertheless, the increasing opposition to coal is expected to propel the medium- to long-term growth of LNG.