Page 9 - GLNG Week 29 2020

GLNG COMMENTARY GLNG

Plans unveiled for major

Vietnamese LNG-to-

power investment

Chan May LNG is planning to invest up to $6bn in an LNG-to-power
project in Vietnam as interest in such ventures grows in the country

INVESTMENT DETAILS have emerged about the planned Summit this week, Chan May LNG’s CEO,
LNG-to-power project being proposed in Viet- John Rockhold, told Reuters that his company
WHAT: nam by Chan May LNG. It is one of a handful would invest up to $6bn in the project, which
Chan May LNG has of such facilities currently in the works – the will include a 4-GW power plant, an LNG ter-
disclosed details of its country is targeting the construction of around minal and storage facilities. Construction is due
planned LNG-to-power 10 such facilities over the next decade as it seeks to begin next year, with the first 2.4-GW phase
project in Vietnam. to address rising demand for electricity. of the project starting up in 2024 and the entire
This comes amid concern that Vietnam will plant online from 2027, Rockhold said.
WHY: struggle to monetise its domestic gas resources, “We have big support from the US govern-
A number of LNG projects while electricity demand risks outpacing con- ment for the project, as they have LNG to sell,” he
are in the works in struction of new power generation capacity from was quoted as saying. “We have a number of US
an effort to address 2021. LNG players thus hope to come to the res- LNG suppliers and we are doing the shopping
the country’s rising cue, even though the construction of LNG-to- right now.”
electricity demand. power projects will require multi-billion-dollar At full capacity, the terminal is anticipated
investments and could also be vulnerable to to import around $1.2bn worth of US LNG per
WHAT NEXT: delays in the wake of the coronavirus (COVID- year, according to Rockhold. Given how the
Chan May LNG is hoping 19) pandemic. price of LNG has fluctuated recently, though, it
to receive an investment is possible that the value of the LNG imported
licence later this year. Major investment by the facility could rise if prices also go up later
It is one of these multi-billion-dollar investments this decade.
that Chan May LNG has in mind. The company, A number of institutions are reported to
which is 60% owned by US investors and 40% have shown an interest in financing the project,
by Vietnamese investors, is intending to build its including the US Export-Import (EXIM) Bank,
project in Thua Thien Hue Province in the North the US International Development Finance
Central Coast region of the country. Corp. (DFC) and the International Finance
On the sidelines of the Vietnam Energy Corp. (IFC).

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