What future gas price mechanism for Vietnam?

  • Rebecca Keller IHS
Keywords: Gas pricing, LNG

Abstract

Gas market expansion proceeded in Vietnam through 2010 despite managed gas pricing, as most indigenous gas reserves could be produced at a relatively low cost. But, as new sources of supply are higher cost, Vietnam must transition to a new pricing mechanism or risk market stagnation and supply declines in the longer term.  Vietnam is not alone in this situation and can draw from lessons learned from other markets in Asia to determine the appropriate pricing mechanism for the market context and government policy objectives. Successful models include gradual introduction of market orientation and price increases.

References

BP. BP statistical review of world energy. www. bp.com.

Prime Minister. Decision approving the Master Plan to develop Vietnam’s gas industry until 2015, with orientations towards 2025. Decision No. 459/QD-TTg dated 30 March 2011.

Prime Minister. Decision approving the Master Plan to develop national power system during the 2011 - 2020 period with vision towards 2030. Decision No. 1208/QD-TTg dated 21 July 2011.

Vietnam gas market development
Published
2015-10-26
How to Cite
Keller , R. (2015). What future gas price mechanism for Vietnam?. Petrovietnam Journal, 10, 85 - 88. Retrieved from http://tapchidaukhi.vn/index.php/TCDK/article/view/853
Section
Articles