Vietnam Oil & Gas Midstream Market Size
|Study Period||2019 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
|CAGR||> 5.57 %|
*Disclaimer: Major Players sorted in no particular order
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Vietnam Oil & Gas Midstream Market Analysis
Vietnam's oil and gas midstream market is expected to record a CAGR of more than 5.57% during the forecast period (2022-2027). The oil and gas midstream market in Vietnam was unaffected by the COVID-19 outbreak. The constant usage of storage facilities for storing hydrocarbons, usage of pipelines for fuel transportation, and resilient demand for LNG in 2020 kept the demand for midstream services normalized. Factors such as increasing demand for natural gas and oil and increasing gas production in the country are expected to boost Vietnam's oil and gas midstream market during the forecast period. However, oil production is decreasing in the country, which is expected to impede the market's growth.
- Vietnam is increasing its storage capacity, with the Vietnam Master Plan pushing for an increase in energy security. However, renewables have impeded growth in the sector as a reliable alternative to oil and gas.
- New offshore natural gas and condensate recovery in the block was made by foreign companies in the exclusive economic zone of Vietnam in the South China Sea, which, if economically viable, can boost the oil and gas midstream sector.
- Increasing investments in Vietnam's midstream industry is driving the market by increasing the capacity of oil and gas transportation.
Vietnam Oil & Gas Midstream Market Trends
This section covers the major market trends shaping the Vietnam Oil & Gas Midstream Market according to our research experts:
Storage Capacity to Witness Significant Growth
- Vietnam aims to develop its oil-stockpiling system to stabilize its domestic oil consuming market and the productive capacity of its oil refineries, enhance energy security, and keep up with the development of the domestic oil market as the country anticipates rising demand for domestic oil and dependence on imports of crude oil and petroleum products.
- The Vietnamese government is pushing for storage tanks to be made by the government and privately-owned oil companies as they are obliged to maintain a volume of reserve amounting to at least 30 days' worth of net imports. The oil stockpiling in the country is expected to be around 5.9 million ton and is expected to increase further during the forecast period.
- In January 2022, Japan Petroleum Exploration (Japex) signed a share purchase agreement with Vietnam's ITECO to promote the construction of the Northern Vietnam LNG Terminal in Hai Phong. The project's initial development includes the construction of a 50,000 cubic meter LNG storage tank and associated jetty facilities capable of handling up to 650,000 ton of LNG per annum. The project is expected to get commissioned by 2025.
- In September 2021, PetroVietnam Gas signed an agreement with AES Corp. to form a joint venture to operate Son My LNG terminal in Vietnam. The project has an investment cost of USD 1.3 billion and is located in the central province of Binh Thuan. The project supplies 3.6 million tons of LNG to two power plants and is expected to be commissioned by 2026.
- Hence, storage capacity is expected to increase slightly during the forecast period due to increased consumption and investment.
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Increasing Investments to Drive the Market
- The mid-stream sector plays a crucial role in transporting and storing natural gas, crude oil, and petroleum products over a long distance from the place of production. Due to increasing investments, the oil and gas midstream sector is witnessing significant growth in Vietnam.
- Natural gas production increased by 6.10% in the region in 2020, to 8.7 billion cubic meters, from 8.2 bcm in 2011, and crude oil production reached around 207 thousand barrels per day. Increasing production of natural gas and crude oil requires better infrastructure such as fabricated tanks and crude oil stockpiles to support the supply chain, which gives rise to more investments in the country's midstream sector.
- Moreover, as of 2020, Nghi Son Crude Oil Stockpiling and Dung Quat Crude Oil Stockpiling are the upcoming oil storage tanks expected to be built to increase the oil stockpile of the country. The new storage is expected to have a combined storage capacity of 2 million cubic meters.
- With an investment of around USD 946 million, PetroVietnam Gas recently awarded TechnipFMC an EPC contract for the Nam Con Son 2 Phase 2 pipeline through the Nam Con Son and Cuu Long basins offshore southern Vietnam. The construction of the project is expected to start by the end of 2022.
- The Vietnam Oil and gas midstream industry is expected to grow slightly during the forecast period due to an increase in natural gas consumption in the region and an increase in investment in the sector.
Vietnam Oil & Gas Midstream Industry Overview
The Vietnamese oil and gas midstream market is consolidated. The major companies include Vietnam National Petroleum Group, Vietnam Oil and Gas Group, Vietsovpetro, PJSC Rosneft Oil Company, and Perenco SA.
Vietnam Oil & Gas Midstream Market Leaders
Vietnam Oil and Gas Group
PJSC Rosneft Oil Company
Vietnam National Petroleum Group
*Disclaimer: Major Players sorted in no particular order
Vietnam Oil & Gas Midstream Market News
- In December 2021, Energy Capital Vietnam (ECV) announced that B.Grimm Power of Thailand and Siemens Energy joined its consortium to develop an LNG-to-power project in Mui Ke Ga (MKG), Binh Thuan Province, in Southern Vietnam. B.Grimm Power plans to invest approximately USD 200 million in equity at the financial close of the project.
- In August 2020, McDermott International Ltd was awarded a contract by Delta Offshore Energy to provide front-end engineering design (FEED) services for a subsea gas pipeline. The pipeline will connect a regasification platform, located approximately 22 miles offshore, to the planned 3,200 MW power plant in Bac Lieu Province, Vietnam.
Vietnam Oil & Gas Midstream Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Forecast in USD billion, till 2027
4.3 LNG Terminals Installed Capacity and Forecast, in MTPA, till 2027
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 PESTLE ANALYSIS
5. MARKET SEGMENTATION
22.214.171.124 Existing Infrastructure
126.96.36.199 Projects in Pipeline
188.8.131.52 Upcoming Projects
184.108.40.206 Existing Infrastructure
220.127.116.11 Projects in Pipeline
18.104.22.168 Upcoming Projects
5.3 LNG Terminals
22.214.171.124 Existing Infrastructure
126.96.36.199 Projects in Pipeline
188.8.131.52 Upcoming Projects
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Vietnam National Petroleum Group
6.3.2 Vietnam Oil and Gas Group
6.3.4 PJSC Rosneft Oil Company
6.3.5 Perenco SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vietnam Oil & Gas Midstream Market Research FAQs
What is the current Vietnam Oil and Gas Midstream Market size?
The Vietnam Oil and Gas Midstream Market is projected to register a CAGR of greater than 5.57% during the forecast period (2023-2028).
Who are the key players in Vietnam Oil and Gas Midstream Market?
Vietnam Oil and Gas Group, PJSC Rosneft Oil Company, Perenco SA, Vietnam National Petroleum Group and Vietsovpetro are the major companies operating in the Vietnam Oil and Gas Midstream Market.
Oil and Gas Midstream in Vietnam Industry Report
Statistics for the 2023 Oil and Gas Midstream in Vietnam market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oil and Gas Midstream in Vietnam analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.