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Leading classification society and risk management foundation Det Norske Veritas AS (DNV) will be assisting the Vietnamese government in the introduction of liquefied natural gas (LNG) in Vietnam, which will also include the distribution of LNG and use as a fuel for coastal shipping and river transportation.

Vietnam's Deputy Prime Minister Hoang Trung Hai this week witnessed the signing of a Memorandum of Understanding (MoU) with DNV at its headquarters in Oslo.

The agreement sets the framework for DNV to work proactively with Petrovietnam and their subsidiary PetroVietnam Gas Corp. (PV Gas) to safely and efficiently introduce and distribute LNG within the country, and to assist in creating an appropriate legislative safety regime.

"We have a great belief in the Vietnamese market and we look forward to contributing to the development of Vietnam in the wider sense through our broad range of competence, including in LNG. Today's frame agreement will take our already strong position in Vietnam a step further," said DNV CEO Henrik O. Madsen.

The agreement enables DNV to assist Vietnam on risk management issues associated with the use of LNG, how to use the waterways to distribute LNG and how to utilise LNG as a fuel for coastal shipping and river transportation.

Vietnam has a growing demand for energy and will in future be dependent on imports. At the same time, it is - next to Bangladesh - the country in the world that will be most affected by the expected rise in sea levels due to climate change. The nation is trying to find a balanced solution, and energy sources such as hydropower, wind energy and LNG as well as oil and coal will be part of the final solution.

Big LNG plans

By the end of this year, PV Gas plans to select an aggregator to buy LNG in the spot market for three years before committing to long-term supplies. The supplies will be received at a floating storage and regasification unit to be completed in 2012; this is a fast-track option in case the country requires gas earlier.

PetroVietnam is finalising the location of a proposed gasification terminal in the south of the country. The 1 million tonne-per-year terminal is scheduled to be ready in 2015. Its capacity will be increased to 3 million and 6 million tpy in 2020 and 2025 respectively.

Extensive LNG expertise

DNV has extensive competence regarding the use of LNG. DNV has provided services to 30 percent of the world's LNG terminal projects. Furthermore, DNV was the first class society to introduce rules for LNG-fuelled ships back in 2001.

DNV has invested considerably in research and development work to ensure further improvements. Over the last decade 20 LNG-fuelled ships - all classed by DNV - have been delivered and are today operating.

DNV has been involved in a large number of studies on LNG since 2004, where different aspects of the use of LNG has been analysed, such as value chain assessments, consequences of LNG marine incidents and operability evaluations for multi-user terminals.