Illustrative image (Photo: VNA)– Despite various difficulties, the Vietnam National Oil and Gas Group (PetroVietnam) has rolled out measures to keep operations buoyant in the current situation and to engage in energy transition based on the future of the industry.According to the firm, the electrification sector has been greatly impacted by the growth of renewable energy sources. Meanwhile, liquefied natural gas (LNG) power projects under construction must develop a plan for conversion to hydrogen fuel.Gasoline demand in Vietnam is forecast to continue to increase and peak in 2030-2035, while the diesel oil (DO) market is likely to be affected more slowly, and the DO supply shortage is forecast to continue until 2035.According to Binh Son Refining and Petrochemical Joint Stock Company (BSR), in the short term, energy transition has not had a clear impact on the demand for petroleum products in Vietnam. However, in the long term, it is happening globally, leading to a decrease in the demand for petroleum products.This is a challenge for refineries to enhance the quality of their products and reduce the ratio of traditional fuels in their products and promote the development of environmentally-friendly products.Regarding oil and gas exploration and production, oil production peaked in 2005 and is on the verge of a sharp decline. Meanwhile, even with the scenario of net zero emissions by 2050, oil is still used for non-energy purposes and in sectors that are difficult to replace fuel such as the aviation industry and sea transport. In particular, gas production is forecast to increase rapidly, but low-cost gas sources are harder to find, while new gas sources are expensive and have to compete with LNG.As of the end of June, about 40 countries had released strategies and roadmaps on hydrogen, including leading countries in greenhouse gas emissions such as China, the US, India, Russia, and Japan.

Source: Viet Nam News August 16, 2022 01:49 UTC