Page 13 - AsiaElec Week 19 2022

AsiaElec GAS-TO -POWER AsiaElec

Vietnam’s Sovico partners

with JERA for LNG supply

opportunities

VIETNAM VIETNAM’S investment conglomerate Sovico Earlier this year, South Korea’s Samsung
announced on May 3 that it had signed a co-op- C&T Corp. and Vietnam’s Lilama Corp. won
eration agreement with Japan’s JERA designed a $940mn engineering, procurement and con-
to explore business opportunities regarding the struction (EPC) contract to build the country’s
supply of LNG to planned power generation first LNG-based power plants. The joint venture
facilities in Vietnam. will build power stations Nhon Trach 3 and
A statement released by Sovico said the Nhon Trach 4 in Dong Nai Province. The plants
agreement marks “strategic collaboration” will have a combined power capacity of 1,500
between the two companies. “Sovico and JERA MW.
will explore partnership opportunities to supply Japan’s Marubeni and Tokyo gas are also
clean, reliable and efficient energy at a reasona- planning to build a 1,500-MW power plant sited
ble price to meet the growing energy demands some 200 km from Hanoi. The $1.9bn project
in Vietnam and across the region,” the statement will consist of an LNG regasification terminal
said. and a gas-fired electricity generation facility at
The agreement was witnessed by Vietnamese Quang Ninh industrial zone.
Prime Minister Pham Minh Chinh and Japanese Furthermore, JERA is also reported to be
Prime Minister Kishida Fumio, who was in the planning an LNG-to-power plant in Vietnam.
country for a state visit. A joint venture between Japanese utilities Tepco
Vietnam meets much of its electricity demand and Chubu Electric, JERA set up a Vietnamese
by burning coal, but the country intends to take subsidiary last year called Jera Energy Vietnam
part in the global energy transition to cleaner Co. that will be examining possible LNG projects
fuels and use LNG to that end. Prime Minister and also projects involving renewable energy.
Chinh pledged last year that Vietnam would While Vietnam is keen to move towards LNG
attain net-zero emissions targets by 2050. To for power generation, it has yet to firmly estab-
reduce its reliance on coal as a power source, the lish sources of supply. The deal between Sovico
government is reported to be drawing up plans and JERA is expected to help resolve any supply
to build some 22 LNG-to-power plants. issues.™

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