Summary

Vietnam oil and gas midstream market is expected to grow at a CAGR of more than 4.57% during the forecast period of 2020 – 2025. Factors such as increasing demand for natural gas and oil and increasing production of gas in the country are expected to boost the demand for the Vietnam oil and gas midstream market during the forecast period. However, oil production is decreasing in the country, which is expected to impede the growth in the market.

Key Highlights
Vietnam is increasing the storage capacity with 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 has been made by foreign companies in the exclusive economic zone of Vietnam in south china sea which if economically viable can increase the growth in the oil and gas midstream sector.
An increase in investment in the midstream industry in Vietnam is driving the market by increasing the capacity of oil and gas transportation.


Key Market Trends

Storage Capacity to Grow


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 both by the government as well as by private 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 tons and is expected to increase further in the forecast period.
Long Son Crude Oil Stockpiling with a capacity of 1 million cubic meters is expected to build near the Thi Vai LNG terminal, which reduces the transportation cost and increases reliability.
Hence, storage capacity is expected to increase slightly in the forecast period due to a increase in consumption and investment.


Increasing Investment to Drive the Market


Consumption of natural gas increased in the region, by 1.3%, to 8.3 mtoe, in 2018 from 8.2 million tons of oil equivalent (mtoe), in 2017. While gas production has increased in the region, approximately, from 8.2 mtoe, in 2017 to 8.3 mtoe, in 2018. Increasing the consumption and production of natural gas requires better infrastructure to support the supply chain.
Nghi Son Crude Oil Stockpiling and Dung Quat Crude Oil Stockpiling are the upcoming oil storage tanks that are expected to be built, in 2019, to increase the oil stockpile of the country. The new storages are expected to have a combined storage capacity of 2 million cubic meters.
PetroVietnam Gas has 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, in 2019.
The Vietnam oil and gas midstream industry is expected to grow slightly in the forecast period due to an increase in consumption of natural gas in the region and increase in the investment in the sector.


Competitive Landscape

The Vietnam 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.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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