Page 9 - AsianOil Week 37 2021

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in 2020, according to BP’s Statistical Review of step in unlocking this capital,” DOE co-founder
World Energy. and managing director Ian Nguyen said.
“Vietnam is currently conducting research, DOE awarded Bechtel a front-end engineer-
searching for markets and accelerating con- ing and design (FEED) contract for the CCGT in
struction of terminal infrastructure to be ready July, after having signed a 25-year, $50bn power
to receive and import LNG,” the minister said. purchase agreement (PPA) with the Vietnamese
Highlighting the government’s approval of the government in January.
Son My LNG import terminal, Dien said the South Korean financial daily Pulse reported
government was considering “many other pro- on September 6 that a consortium of South
jects proposed by foreign enterprises”. Korean utility suppliers was poised to win a
KRW5.5 trillion ($4.25bn) contract to build an
New projects LNG-to-power project in Vietnam.
State-owned PetroVietnam agreed in October Pulse cited multiple unnamed industry
2020 to a joint venture with US power utility AES sources as saying that while the Korea Gas
to develop the $1.4bn Son My LNG project. The (KOGAS) led consortium, which includes Han-
terminal – which will have an initial capacity of wha Energy and Korea Southern Power, was
3mn tpy of LNG, before being expanded to 6mn waiting for the government’s final approval for
tpy – will supply the planned Son My 1 and Son the Hai Lang project, the South Korean firms
My 2 power plants from 2024. were the only competitive bidders in last month’s
Several other projects involving foreign tender.
investors are also in the works. The project is to be developed over three
Malaysian contractor Jaks Resources phases, with the first involving the construc-
announced on September 13 that it had tion of a 1,500-MW power plant, and will cover
signed a non-binding and non-exclusive 1.2mn square metres of land on Quang Tri Prov-
memorandum of understanding (MoU) with ince’s coast. The initial phase carries a KRW2.5
Vietnamese developer T&T Group to explore trillion ($2.13bn) price tag.
the potential of collaborating on the 1,500-
MW Quang Ninh 2 LNG-to-power project in What next
Quang Ninh Province. LNG imports are vital to the government’s
Jaks said it would serve as a “strategic inves- forthcoming decree on reducing greenhouse
tor” that would be responsible for engineering, gas (GHG) emissions. The decree, which is
procurement and construction (EPC) pro- expected to be come into force on January 1,
cesses, while T&T would manage operations 2022, will reduce the country’s GHG emissions
on the ground. The Malaysian firm added in line with commitments set out under the 2015
that it would “lead financing supported by Paris Agreement.
credit agencies for debt” and would also be Vietnam has pledged to reduce GHG emis-
responsible for identifying other international sions by 9%, or 83.9mn tonnes of CO2 equiv-
investors. alent, by 2030 from its “business-as-usual”
Singapore’s Delta Offshore Energy (DOE), scenario – with around 51.5mn tonnes of that
meanwhile, said on September 7 that Bac coming from energy sector reductions.
Lieu’s provincial government had approved By leaning away from coal and oil towards gas
the company’s environmental impact assess- in the quest to slash emissions, Vietnam is fol-
ment (EIA) for its proposed 3,200-MW com- lowing a trend seen in other emerging markets
bined cycle gas turbine (CCGT) power plant that are struggling to balance their green and
and LNG import terminal. economic agendas. Simply put, the fuel remains
“A key driver to growth is foreign direct the easiest way for developing economies to
investment [FDI] and this project is a low-hang- score points in both columns as they build up
ing fruit for such disbursements. The EIA is a key their renewable energy base.™

Week 37 16•September•2021 www. NEWSBASE .com P9