Page 9 - AsianOil Week 03 2022

AsianOil SOUTHEAST ASIA AsianOil

Work begins on Hai Lang LNG-

to-power project in Vietnam

PROJECTS & CONSTRUCTION has begun on the first phase Energy joined the consortium led by US-based
COMPANIES of the Hai Lang LNG-to-power project in Viet- Energy Capital Vietnam (ECV) in December
nam, according to a January 15 government to develop an LNG-to-power project in Mui Ke
announcement. Ga, Binh Thuan Province. And last week, Japan
The project is located in Quang Tri Province. Petroleum Exploration (Japex) announced that it
It will have a power generation capacity of 1.5 would participate in development of the North-
GW and will run on regasified LNG that will be ern Vietnam LNG terminal. (See GLNG Week
imported via a receiving terminal with a capacity 02)
of 1.5mn tonnes per year (tpy). None of Vietnam’s new LNG projects are yet
The project developers are Vietnam’s T&T operational. The country is anticipated to begin
Group and South Korea’s Korea Southern importing LNG this year as it seeks to replace
Power (Kospo), Hanwha Energy and Korea coal-fired power generation with cleaner-burn-
Gas (Kogas). T&T will contribute 40% of the ing natural gas. Indeed, the Thi Vai LNG termi-
investment capital required for the project while nal in Ba Ria-Vung Tau Province was reported to
Hanwha, Kospo and Kogas will contribute 60% be close to completion at the end of 2021.
between them. Hai Lang is estimated to cost Vietnam has committed to phasing out coal
VND54bn ($2.4bn). and not building or investing in new coal power
The Vietnamese government approved con- capacity, and has also pledged to achieve net-
struction of the first phase of Hai Lang in Octo- zero greenhouse gas (GHG) emissions by 2050.
ber, and the project is expected to be ready by The country’s demand for electricity is forecast to
2026-27. rise by 10% per year in the coming years, while its
This is not the only LNG project being devel- LNG imports are projected to expand to 10mn
oped with the help of foreign investors, including tonnes by 2030 and 15mn tonnes by 2035 as it
other Asian companies, in Vietnam. Thailand’s seeks to replace demand for coal with gas and
B.Grimm Power and German-based Siemens other energy sources.™

EAST ASIA

Inpex unveils offshore exploration plans

PROJECTS & JAPAN’S Inpex unveiled plans this week to con- Domestic Offshore Drilling Programme’, which
COMPANIES duct exploratory drilling for natural gas offshore was commissioned by the Agency of Natural
Western Japan later this year. Resources and Energy, part of METI.
According to a January 17 statement, the Inpex has not provided details of the costs
exploration campaign will be carried out off involved, but the METI official that spoke to
Shimane and Yamaguchi prefectures – roughly Reuters estimated that, including analysis and
130 km and 150 km offshore respectively – evaluations over the next few years, the work
between March and July in water depths of was anticipated to cost 33bn yen ($288mn).
roughly 240 metres. It will be the first explora- Half of this would be subsidised by the state-
tion project in Japanese waters since a gas project owned Japan Oil, Gas and Metals National Corp.
off Niigata prefecture in central Japan, operated (JOGMEC).
by Japan Petroleum Exploration (Japex), started If Inpex’s expectations of gas reserves in the
production in 1990, according to a Ministry of region and the economics of the project are con-
Economy, Trade and Industry (METI) official firmed, it is predicted to produce about 900,000
cited by Reuters. tonnes (1.2bn cubic metres) per year of gas. This
For Inpex, it will also be the first offshore gas would boost Japan’s domestic self-sufficiency
exploration project in several years. The com- rate of gas to 3.4% from 2.2% currently, accord-
pany had been conducting geophysical explo- ing to the METI official.
ration and evaluation activities in areas offshore The exploration push comes as Japan
Shimane and Fukuoka prefectures, where it attempts to improve its energy self-sufficiency
expects to establish the presence of oil and gas for oil and gas to 60% or more by 2040, com-
fields. Based on the results of these activities, pared with 34.7% in 2019. The target includes
Inpex conducted exploratory offshore drilling stakes held by Japanese companies in overseas
operations in 2016 as part of the ‘Heisei 26~28 upstream projects.™

Week 03 21•January•2022 www. NEWSBASE .com P9