LNG

Asian economies – notably China, Indonesia, Japan, and South Korea – increasingly use ammonia in power generation, mainly by co-firing low-carbon ammonia with coal or natural gas. Yet demand still outpaces supply, with about 8.8 mtpa of ammonia required to hit 2030 targets.

PetroVietnam has begun construction of the VND27.7 trillion ($1.05 billion) O Mon IV power plant in Can Tho, Mekong Delta. LNG imports — through terminals in Thi Vai and potentially Son My could serve as a backup feedstock to ensure project timelines, given that domestic fuel supply from Block B is delayed.

T&T Group of Vietnam is tackling legal hurdles to get the Hai Lang LNG project built and commissioned by mid-2029. With revised capital costs of more than $2.3 billion, the integrated LNG import and power gen project can also count on backing from the Korean trio Hanwha Energy, KOGAS and KOSPO.

There were 1.53mmt of LNG on the water with destinations in China according to our market visibility at the time of writing on 4 September. These cargoes had an estimated delivery horizon of 23 September. Six cargoes totalling 0.49mmt were broadly headed for China but still had to declare their destination terminals.

LNG Demand: 
Chinese buyers were still opting to re-sell any US cargo contingent on their books instead of importing them into China after Beijing imposed a 15 percent import tariff. Nevertheless, after having imported progressively less LNG in 1H 2025, China's LNG demand returned to growth in July and August.

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In the absence of new investment in natural gas, global supply would decline by around 11% per year, resulting in a shortfall of about 250 bill cu ft per day by 2030, or about half of projected global demand, a new US energy report claimed.

Asian spot LNG prices continued to soften last week on muted demand and ample supply.

US developer, Argent LNG has submitted a letter of intent (LOI) and a Preliminary Waterway Suitability Assessment (PWSA) to the US Coast Guard.