Japan’s city gas supplier and LNG importer, Tokyo Gas, has formed a joint venture with two other firms to develop its second LNG-to-power project in Vietnam.
Besides Tokyo Gas, the Thai Binh LNG Power joint venture (TBLP) consists of Japan’s Kyuden and Vietnam’s Truong Thanh Viet Nam.
Tokyo Gas said in a statement that the partners established TBLP to initially conduct feasibility study for the LNG-to-power project in Thai Thuy District, Thai Binh province, Vietnam, which includes an offshore LNG receiving terminal and a 1.5 GW natural gas-fired power plant.
According to Tokyo Gas, the scope of the project ranges from development, construction, and operation of the power plant and an LNG receiving terminal, LNG procurement to selling electricity to Vietnam Electricity.
TBLP will assess the economic and technical feasibility, select EPC contractor, and develop LNG procurement strategy during feasibility study phase.
Tokyo Gas said the partner aim to start the project’s commercial operation in 2029, but it did not provide any additional details.
Last month, the three firms received an investment licence from the Vietnamese government to develop the $1.99 billion LNG-to-power project in the northern province of Thai Bin.
This is the second LNG-to-power project for Tokyo Gas in Vietnam, following the onshore LNG receiving terminal and natural gas-fired power plant project in Quang Ninh province.
In November 2022, Tokyo Gas and Marubeni joined forces with PetroVietnam Power and Colavi to establish Quang Ninh LNG Power as part of their plans to build an LNG-to-power project in Vietnam’s Quang Ninh province.
This move followed an investor registration certificate received from the Vietnamese government on July 11, 2022.
Vietnam started importing LNG last year
Vietnam became an LNG importer in 2023.
PetroVietnam Gas, a unit of state-owned PetroVietnam, launched in October 2023 its Thi Vai LNG import terminal, the country’s first such facility.
The Thi Vai LNG import facility consists of one 180,000-cbm LNG tank, a jetty, and regas area.
The terminal has a capacity of 1 mtpa in its first phase, but PetroVietnam Gas plans to boost the capacity to 3 mtpa in the next stage.
It will be an important link in supplying gas to consumers, including the Nhon Trach 3 and 4 power plants.
According to the Vietnamese government, the country is planning to develop up to 13 LNG power plants with a combined capacity of 22.4 GW by 2030.