Japan’s Japex says to take part in Vietnam LNG terminal

Japan Petroleum Exploration Co (Japex) has revealed plans to buy a stake in a planned liquefied natural gas terminal in the northern part of Vietnam.

According to a Japex statement on Tuesday, the Japanese firm has signed a share purchase agreement with Vietnam’s ITECO JSC, the developer of the LNG import development.

Also, Japex said it would further proceed with the share acquisition procedures.

The project in question involves the construction of an LNG terminal in the Nam Dinh Vu Industrial Park in Hai Phong City, Vietnam, but also procurement, storage, and supply of LNG.

This project, including the Northern Vietnam LNG terminal, was approved by the government and added to the gas industry development master plan on February 11, 2020, Japex said.

FID in the second half of 2022

Japex said in the statement that the partners plan to make a final investment decision (FID) on the project in the second half of this year.

As part of the initial development, the terminal would have a 50,000 cbm LNG storage tank and associated jetty facilities capable of handling a throughput volume of up to 650,000 metric tons of LNG annually, it said.

Japan's Japex says to take part in Vietnam LNG terminal
Image: Japex

In addition, there are plans for a second LNG storage tank of 30,000 cbm for the latter half of the 2020s as the expansion development.

The facilities could commence commercial operation in 2025.

In alignment with the project, ITECO is in discussions about LNG procurement as well as its offtake and distribution, Japex said.

Vietnam LNG imports

Japex operates the Soma LNG import terminal in Shinchi town. In October, it received its first carbon-neutral LNG cargo at the facility that supplies fuel to the adjacent gas-fired power plant.

On the other side, Vietnam has still not started importing LNG. However, the government of Vietnam previously said that the country would start importing LNG in 2022 in order to meet the country’s growing power demand.

There are several LNG-to-power developments and LNG plants under development in Vietnam.

PetroVietnam Gas, a unit of state-owned PetroVietnam, said last year it had planned to import the first cargo via its new Thi Vai LNG terminal in 2022.

Most Popular

Daniel Kalms leaves Woodside

Woodside's executive vice president and chief operating officer international, Daniel Kalms, is leaving the Australian LNG player.

Lithuania’s Ignitis to sign long-term LNG supply deal with EQT

Lithuanian state-controlled energy company Ignitis will sign a long-term LNG supply and purchase agreement with a unit of US natural gas producer EQT following the completion of a tender.

Exmar’s FSU heads to Colombia

Exmar's newly converted 146,000-cbm floating storage unit, Tura, is en route to Colombia to begin operations as part of Regasificadora Del Pacífico's LNG import project on Colombia's west coast.

More News Like This

Brunei LNG seals long-term SPA with Japan’s Japex

LNG producer Brunei LNG has signed a long-term LNG sales and purchase agreement with Japan Petroleum Exploration Co (Japex).

Japan’s LNG imports down 20.6 percent in April

Japan’s liquefied natural gas (LNG) imports decreased by 20.6 percent in April compared to the same month last year, according to provisional data released by the country’s Ministry of Finance.

Japan’s LNG imports up 13.9 percent in March

Japan’s liquefied natural gas (LNG) imports rose by 13.9 percent in March compared to the same month last year, according to provisional data released by the country’s Ministry of Finance.

Japan’s Japex buys two spot LNG cargoes

Japan Petroleum Exploration Co (Japex) said it had purchased two spot LNG cargoes at "significantly" higher prices to substitute cargoes from the Middle East due to the ongoing blockade of the Strait of Hormuz.