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for conventional gas production to $2.39 per restrictions on which companies can set up
mmBtu ($66.11 per 1,000 cubic metres) for the LNG refuelling stations should also help
six months from April 1. expand the fuel’s reach.
The Business Standard reported on June 18 The Petroleum and Natural Gas Regulatory
that IGX had delivered a market-discovered Board (PNGRB) said earlier this month that
price of $4.07 per mmBtu ($112.58 per 1,000 LNG stations would no longer be included in
cubic metres) within its first two days of opera- city-gas distribution (CGD) licences, which
tion. The platform reportedly traded 100 mmBtu grant exclusive control of geographical areas
gas during that window. to piped gas distributors.
“We have brought in 12 members and over That decision, PNGRB chairman
350 clients so far. GAIL [India] and Petronet Dinesh Kumar Sarraf told S&P Global
have joined as our members,” the managing Platts on June 18, should help develop
director and CEO of IGX-operator Indian small-scale and commercial LNG use
Energy Exchange (IEX), Rajiv Srivastava, told within the transport sector.
the paper. “The traditional ‘LNG premium over gas’ has
State-run GAIL and Petronet have been joined narrowed down significantly. Therefore India
by privately owned Adani Gas as well as Manikaran needs to develop this LNG fuel alternative. We
Power, GMR Energy Trading, Kreate Energy and have studied and found out that the [CGD] com-
Andhra Pradesh Gas Power, to name but a few. panies are not necessarily the best bet to develop
In addition to the IGX’s establishment, LNG stations. Therefore we have opened up the
New Delhi’s recent decision to remove LNG sector,” Sarraf said.™

SOUTHEAST ASIA

ExxonMobil mulls investment

in Vietnamese gas-fired power

FINANCE & EXXONMOBIL could be considering a major planned coal power projects over the next 10
INVESTMENT investment in Vietnam’s gas-fired generating years, and to replace this planned capacity with
sector in a bid to find new gas markets and to gas and renewables.
promote US exports. By 2030, the government’s National Steering
The Vietnamese government said this week Committee for Power Development wants the
that Prime Minister Nguyen Xuan Phuc had held capacity of new power plants using LNG to be
a telephone call with ExxonMobil LNG Market 12,750 MW, excluding old power plants con-
Development president Irtiza Sayyed, where verted to use LNG.
they discussed ExxonMobil buying into two 6,000 MW of this figure are under the PDP
power plants and LNG import assets, Bloomb- VII, including the Nhon Trach 3 and 4 (capacity
erg reported. of 1,500 MW) and Son My 1 and 2 (4,500 MW)
The prime minister said shipments of US power plants.
LNG would “help create harmonious trade bal- Vietnam would also need power plants using
ance between Vietnam and US.” LNG in the north and the centre to replace Hai
The government said in a statement that Viet- Phong 3 and Vung Ang 3 coal-fired thermal
nam had huge demand for energy and welcomed power plants (TPPs).
ExxonMobil’s move to invest in the country. Meanwhile, ExxonMobil is already involved
One possible project is a 4,000-MW LNG- in Vietnam through a 64% stake in the Blue
to-power plant in the city of Haiphong, the gov- Whale offshore gas development through a part-
ernment said, which could be opened between nership with state-owned PetroVietnam.
2025 and 2030. Another possibility is a planned The world’s super-majors are looking to find
3,000-MW LNG power plant in the Mekong new investment activities as they are forced by
Delta province of Long An. The government said investor activism to reduce their dependence oil
that the projects could use LNG imported form and to develop cleaner energy.
the US and other countries. Companies such as Royal Dutch Shell and Total
The turn to gas comes as Vietnam has pub- have been diversifying away from upstream activi-
lished radical new plans to abandon 15 GW of ties as demand for oil has slumped this year.™

Week 24 18•June•2020 www. NEWSBASE .com P5