Page 12 - GLNG Week 38 2021

GLNG ASIA GLNG

AES signs JV deal for Vietnamese

LNG terminal

VIETNAM US-BASED AES Corp. has signed a joint ven- Industry Minister Nguyen Hong Dien said ear-
ture agreement with Vietnam’s state-owned Pet- lier this month. This will support up to 11 GW
Son My is one of a roVietnam to operate the planned Son My LNG of gas-fired power generation anticipated to be
number of proposed import terminal in the country. built in the country over the next decade.
LNG projects in Son My is one of a number of proposed In a video posted online, he added that the
Vietnam. LNG projects in Vietnam, which is promoting government was working to fast-track the rate of
increased gas consumption so that it can reduce development of LNG infrastructure.
the use of dirtier fuels such as coal. It is antici- While there are many LNG projects in the
pated to come online in 2025 but a final invest- pipeline in Vietnam, the expectation is that
ment decision (FID) has not yet been taken. many of them will not succeed, given the sheer
The terminal will have a capacity of 3.6mn scale of capacity that has been proposed. Of
tonnes per year following the first stage of its these projects, only seven have been included
development, but this will rise to 9mn tpy in in Hanoi’s Power Development Plan intro-
the subsequent stage. It will deliver gas to two duced last year.
planned power stations, Son My 1 and Son My 2. The government’s LNG drive is also aimed at
The construction cost is estimated at $1.3bn. supporting a projected surge in power demand in
Vietnam does not currently import any LNG, Vietnam in line with economic growth over the
but the government expects the first deliveries in coming decades. Today the fuel only accounts for
2022, when the Thi Vai project is due on stream. 13% of the country’s power mix, while coal has
The government predicts that import volumes a share of 36%, making it the dominant fuel. But
will grow rapidly to 5mn tpy by 2025, 10mn the government projects that the share of gas will
tpy by 2030 and 15mn tpy by 2035, Vietnamese rise to 21% by 2030 and 24% by 2045. ™

NFE finalises deal on Sri Lankan

LNG terminal

SRI LANKA US-BASED New Fortress Energy (NFE) has The terminal is due online in 2023 and will
finalised a deal with the Sri Lankan government receive cargoes from NFE’s global LNG supply
The terminal is due on building an offshore regasification plant in the portfolio. It will be NFE’s first terminal in Asia,
online in 2023. South Asian country. with the company’s other assets located mainly
NFE is set to acquire a 40% interest in a local in the Americas.
utility called West Coast Power, which owns a NFE has said before that permits and approv-
310-MW power plant in the Sri Lankan capital als will be needed before construction on the
of Colombo. The LNG plant will supply this sta- terminal can begin. The new power station will
tion and an additional 700 MW of capacity that run on turbines supplied by General Electric. ™
will be added. NFE signed a deal with the gov-
ernment to build a new 350-MW plant in July.
Seeking both environmental and economic
gains, Sri Lanka is looking to expand the role of
gas in its economy, while shifting away from coal
and oil-based power generation.
“This is a significant milestone for Sri Lan-
ka’s transition to cleaner fuels and more relia-
ble, affordable power,” NFE CEO Wes Edens
commented. “We are pleased to partner with
Sri Lanka by investing in modern energy infra-
structure that will support sustainable economic
development and environmental gains.”

P12 www. NEWSBASE .com Week 38 24•September•2021