Page 6 - AsiaElec Week 41

AsiaElec COMMENTARY AsiaElec

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

VIETNAM AUTHORITIES representing the Vietnamese would seem an obvious match in terms of one
port city of Haiphong have approved an LNG selling LNG to the other. As well as the Haiphong
WHAT: import terminal that has been proposed by project, ExxonMobil is also considering devel-
The Vietnamese city of ExxonMobil to serve as part of a $5.1bn gas-to- oping a 3-GW LNG-to-power facility in Long
Haiphong has approved power project. On the same day, the Haiphong An Province.
two LNG-to-power People’s Committee also approved another The developer of the other project that was
projects LNG-to-power project that is estimated to cost approved last week in Haiphong has not been
$1.9bn. identified. However, the Haiphong committee
WHY: The ExxonMobil project would begin gener- said the project would have a capacity of 1.6 GW,
Vietnam is ramping up ating power by 2026-27, with an initial capacity and that its first phase would be operational from
LNG imports to use as of 2.25 GW that would be expanded to 4.5 GW 2025. The entire project is then due to be in ser-
feedstock for new power by 2029-30. The associated LNG terminal would vice from 2028.
generation capacity have the capacity to import 6mn tonnes per year
(tpy) of LNG. Import push
WHAT NEXT: The Vietnamese government said earlier this The approvals come as a growing number of
A number of further year that LNG for the project could be imported Asian countries are building new LNG import
Vietnamese LNG import from the US. ExxonMobil is currently convert- capacity in order to meet rising demand for nat-
plans are at various ing the Golden Pass LNG import terminal on ural gas and lessen their dependence on more
stages of development the US Gulf Coast to liquefaction in partnership polluting fuel, such as coal.
with Qatar Petroleum (QP). Indeed, the Institute of Energy of Vietnam is
Unlike other Gulf Coast LNG terminals, the in the process of drafting a new master power
Golden Pass export facility was sanctioned with- development plan. It has compiled a list of 22
out any long-term offtake contracts to under- potential LNG-to-power projects with a com-
pin it being publicised – though it is possible bined capacity of up to 108.5 GW, the first of
that some had still been signed without details which is anticipated to enter service by 2023.
being made public. While the apparent lack of If all of these proposed projects go ahead, they
offtake agreements has been seen as indicative could nearly double Vietnam’s total installed
of the financial heft of the partners building the generation capacity of 56 GW. NewsBase
terminal, securing long-term buyers remains reported in July that the Vietnamese government
important. was targeting the construction of at least 10 such
Indeed, an ExxonMobil executive said in projects during the coming decade.
late 2019 that there was potential for such deals Consultancy Rystad Energy said in late June
tied to Golden Pass to be firmed up. And if the that four LNG terminals were already “in the
super-major is building both export and import project pipeline” – the Thi Vai LNG, Son My
capacity in different countries, these facilities LNG, Tien Giang LNG and South West LNG

P6 www. NEWSBASE .com Week 41 14•October•2020