Novatek pens LNG cooperation deal with PetroVietnam Power

Russian independent LNG producer Novatek said it has signed a cooperation deal with PetroVietnam Power, a unit of PetroVietnam.

Under the deal, the two firms would work on LNG and power projects in Vietnam, according to a Novatek statement on Thursday.

The partners intend to cooperate on LNG infrastructure projects with the view to meeting the growing demand for electricity in Vietnam.

Furthermore, Novatek said the agreement represents an “important step” in the development of the company’s cooperation with Vietnamese corporations, which received an additional impetus after the firm opened its representative office in Vietnam in August.

“Vietnam’s electricity consumption has been growing at an average annual rate of 10% over the past 10 years, and Novatek is ready to meet this growing market’s needs,” Novatek’s chief Leonid Mikhelson, said.

“We intend to become a reliable partner for Vietnam in realizing its announced goals of phasing out coal-fired power generation, and facilitate the country’s transition to clean energy of natural gas. This is in line with our strategy to expand our presence in the Asia-Pacific gas markets,” he said.

New LNG power plants

PetroVietnam Power recently broke ground on two LNG power plants in the southern province of Dong Nai.

To state-owned firm is building the Nhon Trach 3 and 4 plants with a total capacity of 1,500 megawatt (MW).

Also, PetroVietnam Power recently appointed a consortium of Techcombank and Military Bank to arrange syndicated loans worth $1.4 billion for the two LNG-fueled plants.

The firm plans to launch commercial operations at the plants by 2024.

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.

PetroVietnam Gas, also a unit of PetroVietnam, will supply regasified LNG to the new power plants.

The firm recently said it plans to import the first cargo via its new Thi Vai LNG terminal in 2022.

PV Gas expects to launch the onshore LNG receiving terminal at Thi Vai in the coastal area southeast of Ho Chi Minh City in the third quarter of next year.

This facility in the Ba Ria-Vung Tau province will have a capacity of 1 mtpa in its first phase, while PV Gas plans to boost the capacity to 3 mtpa in the next stage.

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