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Vietnamese LNG

projects move forward

The Vietnamese city of Haiphong has approved two LNG-to-
power projects that are estimated to cost a combined $7bn

COMMENTARY AUTHORITIES representing the Vietnamese the apparent lack of offtake agreements has been
port city of Haiphong have approved an LNG seen as indicative of the financial heft of the part-
import terminal that has been proposed by ners building the terminal, securing long-term
WHAT: ExxonMobil to serve as part of a $5.1bn gas-to- buyers remains important.
The Vietnamese city of power project. On the same day, the Haiphong Indeed, an ExxonMobil executive said in
Haiphong has approved People’s Committee also approved another late 2019 that there was potential for such deals
two LNG-to-power LNG-to-power project that is estimated to cost tied to Golden Pass to be firmed up. And if the
projects. $1.9bn. super-major is building both export and import
The ExxonMobil project would begin gener- capacity in different countries, these facilities
WHY: ating power by 2026-27, with an initial capacity would seem an obvious match in terms of one
Vietnam is ramping up of 2.25 GW that would be expanded to 4.5 GW selling LNG to the other. As well as the Haiphong
LNG imports to use as by 2029-30. The associated LNG terminal would project, ExxonMobil is also considering devel-
feedstock for new power have the capacity to import 6mn tonnes per year oping a 3-GW LNG-to-power facility in Long
generation capacity. (tpy) of LNG. An Province.
The Vietnamese government said earlier this The developer of the other project that was
WHAT NEXT: year that LNG for the project could be imported approved last week in Haiphong has not been
A number of further from the US. ExxonMobil is currently convert- identified. However, the Haiphong committee
Vietnamese LNG import ing the Golden Pass LNG import terminal on said the project would have a capacity of 1.6 GW,
plans are at various the US Gulf Coast to liquefaction in partnership and that its first phase would be operational from
stages of development. with Qatar Petroleum (QP). Unlike other Gulf 2025. The entire project is then due to be in ser-
Coast LNG terminals, the Golden Pass export vice from 2028.
facility was sanctioned without any long-term
offtake contracts to underpin it being publicised Import push
– though it is possible that some had still been The approvals come as a growing number of
signed without details being made public. While Asian countries are building new LNG import

P6 www. NEWSBASE .com Week 41 15•October•2020