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Bigger push investment target for ExxonMobil.
If the facility receives its licence as expected, it The super-major would use LNG imported
will join a small but growing list of projects that from the US or elsewhere in its global portfolio.
are moving into the construction phase. Con- However, Vietnam is coming under pressure
sultancy Rystad Energy listed four LNG import from US President Donald Trump to narrow the
terminals as being “in the project pipeline” as of trade deficit the US has with the Asian country.
late June, primarily in Southern Vietnam – Thi Thus importing LNG from the US could help
Vai LNG, Son My LNG, Tien Giang LNG and balance trade between the two countries at a
South West LNG. These terminals will have a time when Vietnam could receive a diplomatic
combined capacity of 10mn tonnes per year boost from doing so.
(tpy) of LNG by 2025. And on the US side, LNG exporters are keen
However, Rystad warned that the combined to grow their markets, especially given that the
capacity of the terminals would only reach 1mn trade war with China continues to depress trade
tpy by 2023 with the start-up of Phase 1 of the Thi between those two countries. Indeed, Delta
Vai project. Thus in the short term, gas demand struck a preliminary 2mn tpy supply deal for its
still threatens to outstrip supply and could lead Bac Lieu project with the proposed Magnolia
to Vietnam ramping up its coal imports to meet LNG facility in the US last year. However, the
power generation needs. Magnolia project recently changed hands, and
Construction on Thi Vai LNG began late last the new owner, Glenfarne Group, has not com-
year. mented on the supply deal.
Other developments are also in the works, Nonetheless, Glenfarne said in June that it
but have not yet moved to construction. Among was working to reach a final investment decision
these is Delta Offshore Energy’s Bac Lieu LNG- (FID) on the terminal, and it seems reasonable to
to-power projects. The developer is currently in deduce that it will be keen to finalise the prelim-
negotiations over the power purchase agreement inary deal in order to move its project forward.
(PPA) that would underpin the project. The challenge for Vietnam, however, is that
Meanwhile, the Vietnamese government none of these projects are particularly fast-mov-
said in late June that super-major ExxonMo- ing. Meanwhile, there have been warnings that
bil was exploring opportunities to invest in the power shortages will soon lead to blackouts in
country’s LNG-to-power sector. According to the country – potentially as soon as this year.
Hanoi, the potential investments the company Short-term solutions to this include ramping
is looking into include a proposed 4-GW LNG- up coal imports. But this could have a negative
to-power scheme in the northern port city of impact on Vietnam’s ability to meet its goals of
Haiphong, which could enter service sometime reducing greenhouse gas (GHG) emissions by
in 2025-30. A 3-GW LNG-to-power scheme in 20-30% by 2030 and generating 80% of its power
Long An Province was also flagged as a potential from gas within the next 15 years.™

P8 www. NEWSBASE .com Week 30 30•July•2020