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Plans unveiled for major

Vietnamese LNG-to-power project

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

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

Week 30 30•July•2020 www. NEWSBASE .com P7