Japan’s LNG trading giant Jera said it has formed a unit in Hanoi as it looks to develop LNG-to-power projects in Vietnam.
In a statement on Tuesday, the joint venture of Tepco and Chubu Electric announced the start of full-scale operations by Jera Energy Vietnam, the unit that it established to serve as its base of operations in the country.
As Jera’s business base in Vietnam, the new unit would be responsible for furthering the LNG-to-power projects in the country that are now under consideration, as well for exploring new projects, including those in renewable energy, and for gathering information.
In addition, it would pursue a wide range of business opportunities including collaboration with local energy companies, Jera said.
Several LNG projects
Vietnam faces challenges due to economic growth such as a rising demand for electricity, the depletion of domestic resources, and how to address energy decarbonization.
Gas-fired power generation, which emits less CO2 than power generation using other fossil fuels, can be a flexible supplement to intermittent renewable energy and is expected to be an indispensable energy source for furthering the energy transition, Jera said.
For this reason, several companies are planning LNG projects in the country.
“Jera has positioned Vietnam as a priority country and is considering the development of several LNG-to-power projects that will contribute to both decarbonization and to a stable supply of energy that supports economic growth,” the firm said.
Jera previously revealed its ambitions to develop LNG-to-power projects in Vietnam.
Back in October 2020, a unit of US energy giant ExxonMobil and Jera announced plans to jointly develop a power plant and LNG import infrastructure in the Vietnamese city of Hai Phong.
Vietnam has still not started importing LNG. However, the country should start receiving LNG this year in order to meet its growing power demand.
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.
Samsung C&T, which is building the Thi Vai LNG terminal in the coastal area southeast of Ho Chi Minh City, recently won a contract from PetroVietnam Power, a unit of PetroVietnam, to build a new power plant that will get LNG from this facility.
The Nhon Trach 3 and 4 plants will have a total capacity of 1,500 MW.