What are the regulations on national key projects and priority investment projects for development of infrastructure for reserve and supply of petrol, oil and gas products in Vietnam?
- Vietam: To develop infrastructure for reserve and supply of petrol, oil and gas products in such a way to ensure sustainability?
- What are the regulations on national key projects and priority investment projects for development of infrastructure for reserve and supply of petrol, oil and gas products in Vietnam?
- What are the policies for implementing the national planning for development of infrastructure for reserve and supply of petrol, oil and gas products in Vietnam?
Vietam: To develop infrastructure for reserve and supply of petrol, oil and gas products in such a way to ensure sustainability?
Recently, Deputy Prime Minister Tran Hong Ha just signed Decision 861/QD-TTg in 2023 on approval for national planning for development of infrastructure for reserve and supply of petrol, oil and gas products for the period of 2021-2030, with a vision to 2050.
Accordingly, the viewpoint of development of infrastructure for reserve and supply of petrol, oil and gas products includes:
- Develop infrastructure for reserve and supply of petrol, oil and gas -products in such a way to ensure elasticity, reserve capacity, development requirements in the entire territorial space, sustainable development in association with environmental protection, prevention and control of natural disasters and response to climate change; use land in an effective and economic manner, and strictly protect the area of rice cultivation land, protection forest land, special-use forest land and production forest land (natural forests and nature conservation zones).
- Develop infrastructure for reserve and supply of petrol, oil and gas products in such a way to ensure harmony of national interests, local interests, interests of enterprises and people.
- Develop infrastructure for reserve and supply of petrol, oil and gas products in a modern manner and in such a way to meet standards, regulations, techniques and requirements for development and international economic integration of Vietnam.
- Develop infrastructure for reserve and supply of petrol, oil and gas products on the basis of utilization of capacity for transportation connectivity, exploitation of all domestic resources and encouragement to foreign investors to invest in infrastructure for reserve and supply of petrol, oil and gas products.
The general objectives of development of infrastructure for reserve and supply of petrol, oil and gas products:
- Develop national infrastructure for reserve and supply of petrol, oil and gas products including national reserve,
- Reserve for production, commercial reserve, transportation, distribution and circulation in such a way to meet economic, technical and environmental targets and ensure safe, sufficient and continuous supply and reserve of petrol, oil and gas products for socio-economic development, defense and security.
- Capacity for reserve of crude oil, petrol and oil products must be sufficient to serve in 75-80 days of net imports, and will be sufficient to serve in 90 days of net imports; capacity for reserve of gas products must meet domestic demands and be sufficient to supply material gas for energy and industry.
Specific objectives
- Regarding infrastructure for reserve
+ Infrastructure for reserve of petrol and oil products
++ Infrastructure for reserve for production: Ensure that infrastructure for reserve of crude oil, materials and products under the design created by petrol and oil refineries are readily available and can serve at least 20 days of net imports for the period of 2021-2030, up to 25 days of net imports for the period after 2030.
++ Infrastructure for commercial reserve: Ensure that infrastructure for commercial reserve can meet domestic demands. To be specific: increase capacity for commercial reserve by 2.500-3.500 thousand m3 of petrol and oil products for the period of 2021-2030, have a capacity for commercial reserve of 10.500 thousand m3 of petrol and oil products for the period after 2030 and the capacity for commercial reserve will be sufficient to serve in 30-35 days of net imports.
++ Infrastructure for national reserve: maintain a capacity for national reserve of 500 – 1.000 thousand m3 of petrol and oil products and 1.000 - 2.000 thousand tonnes of crude oil, and the capacity for national reserve will be sufficient to serve in 15-20 days of net imports for the period of 2021-2030; maintain a capacity for national reserve of 500 – 8000 thousand m3 of petrol and oil products and 2.000 - 3.000 thousand tonnes of crude oil, and the capacity for national reserve will be sufficient to serve in 25-30 days of net imports for the period after 2030.
+ Infrastructure for reserve of gas products
++ Maintain a capacity of reserve of 800 thousand tonnes of LPG for the period of 2021-2030 and 900 thousand tonnes of LPG for the period after 2030.
++ Be capable of importing LNG and meet market’s consumption demand, thereby ensuring material gas supply for energy and industry with storage capacity of 20 million tonnes/year for the period of 2021-2030 and 40 million tonnes/year for the period after 2030.
- Regarding infrastructure for supply
Develop infrastructure for supply of petrol, oil and gas products in such a way to meet demands for transportation by pipelines from supply sources (oil refineries, central depots, LPG distribution stations and LNG import depots) to centers and households to serve their industrial and civil consumption.
What are the regulations on national key projects and priority investment projects for development of infrastructure for reserve and supply of petrol, oil and gas products in Vietnam?
What are the regulations on national key projects and priority investment projects for development of infrastructure for reserve and supply of petrol, oil and gas products in Vietnam?
Pursuant to Section VIII, Article 1 of Decision 861/QD-TTg in 2023, regulations on national key projects and priority investment projects are as follows:
NATIONAL KEY PROJECTS AND PRIORITY INVESTMENT PROJECTS
- Focus and priority investment in infrastructure for national reserve of crude oil, petrol and oil products and pipelines from oil refineries to depots for national reserve of crude oil, petrol and oil products.
- Investment in large-scale petrol and oil depots in areas having deep-water ports in a manner that ensures terminal reserve and supply.
- Investment in depots of petrol and oil products in combination with aviation fuel from fuel terminals at international airports, especially new airports.
- Investment in major LNG import depots in a manner that ensures supply of gas products for gas power plants.
- Reform and upgradation of B12 pipelines in a manner that ensures a safe and efficient supply of petrol and oil products to the Northern region.
- Investment in pipelines from oil refineries to depots for national reserve of crude oil, petrol and oil products.
- Investment in gas pipelines from onshore distribution stations and LNG depots to gas power plants.
(Detailed list is provided in Appendix XII)
Thus, national key projects, with priority investment in developing national petroleum and gas reserve and supply infrastructure, are mainly:
- For gasoline depots in areas with deep-water ports, at international airports, especially new airports.
- For gas that ensures supply of gas products for gas power plants.
What are the policies for implementing the national planning for development of infrastructure for reserve and supply of petrol, oil and gas products in Vietnam?
According to the provisions of Section IX, Article 1 of Decision 861/QD-TTg in 2023, regulations on solutions to implement planning are as follows:
IMPLEMENTATION SOLUTIONS
1. Regarding mechanisms and policies
- Complete mechanisms and policies on petrol, oil and gas products in order to promote investment in development of infrastructure for reserve and supply (mainly private investment), thereby contributing to assurance about energy security.
- Prioritize the utilization of land and water surface for development of infrastructure for reserve and supply of petrol, oil and gas products under the planning.
- Formulate, issue and complete appropriate mechanisms and policies to well perform tasks of national reserve; formulate mechanisms and policies to encourage enterprises in performing tasks of national reserve.
- Study and complete financial mechanisms and policies for projects on investment in depots for national petrol and oil reserves funded by state budget.
- Study, amend and update legal documents in accordance with international practices and development of Vietnam in the context of extensive international integration.
- Study, amend, formulate and issue standards, economic and technical norms on petrol, oil and gas products from national reserve; complete legal policies on management, supervision, administration and regulation of the use of petrol, oil and gas products from national reserve.
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Thus, for the policy of implementing national planning for development of infrastructure for reserve and supply of petrol, oil and gas products:
- Complete mechanisms and policies on petrol, oil and gas products in order to promote investment in development of infrastructure for reserve and supply (mainly private investment), thereby contributing to assurance about energy security.
- Prioritize the utilization of land and water surface for development of infrastructure for reserve and supply of petrol, oil and gas products under the planning.
- Formulate, issue and complete appropriate mechanisms and policies to well perform tasks of national reserve; formulate mechanisms and policies to encourage enterprises in performing tasks of national reserve.
- Study and complete financial mechanisms and policies for projects on investment in depots for national petrol and oil reserves funded by state budget.
- Study, amend and update legal documents in accordance with international practices and development of Vietnam in the context of extensive international integration.
- Study, amend, formulate and issue standards, economic and technical norms on petrol, oil and gas products from national reserve; complete legal policies on management, supervision, administration and regulation of the use of petrol, oil and gas products from national reserve.
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