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.

- Advertisements -
spot_img

Most Popular

Teekay LNG to become Seapeak after $6.2 billion deal

Teekay LNG Partners will rebrand as Seapeak following the completion of its previously announced $6.2 billion merger deal with...

Taiwan plans to build up to 16 LNG carriers

Taiwan is looking into building a national fleet of up to 16 new liquefied natural gas (LNG) carriers. The country...

Greece’s TEN takes delivery of LNG newbuild

Greek shipping firm Tsakos Energy Navigation (TEN) has taken delivery of a brand new LNG carrier from South Korea's...

More News Like This

Japex gets carbon-neutral LNG cargo at Soma terminal

Japan Petroleum Exploration Co (Japex) said it has received its first carbon-neutral LNG cargo at the Soma import terminal...

Japanese firms team up to build LNG-powered limestone carrier

Japan's NS United Naiko Kaiun Kaisha is joining forces with several compatriot firms to build a hybrid LNG-powered coastal...

Japex sells stake in Canadian shale gas project to Petronas

Japan Petroleum Exploration Co (Japex) said it would sell its stake in a Canadian shale gas project to a...

Japex says Soma LNG back to full ops after quake

Japan Petroleum Exploration Co (Japex) said it has restarted its Soma LNG import terminal after a magnitude 7.3 earthquake...