US-based energy giant ExxonMobil, Japan’s power utility JERA have teamed up to develop an LNG-to-power project in Vietnam.
Through its unit ExxonMobil Hai Phong Energy (EMPHE), ExxonMobil signed a memorandum of understanding with JERA and Hai Phong People’s Committee. Under the agreement, the trio aims to work together on a potential integrated LNG-to-power project in Hai Phong.
ExxonMobil, the Hai Phong city government and JERA have agreed to jointly study natural gas market development opportunities, including LNG import facilities and gas-fired power plants.
ExxonMobil has submitted a master plan application with a project concept for consideration and potential inclusion in Vietnam’s National Power Development Plan (PDP).
Hai Phong City has submitted a letter of recommendation to include power demand with potential locations of power plants and LNG import infrastructure.
The project submissions are pending government approvals, a joint statement reads.
LNG-fueled power in Hai Phong will provide a more environmentally friendly alternative to the currently proposed coal projects in the master plan.
“Hai Phong is industrializing at a fast pace, with an annual growth rate of over 20 per cent. Therefore, our annual power consumption is growing and is expected to double between 2020 and 2030,” said Nguyen Van Tung , chairman, Hai Phong People’s Committee. “Hai Phong City is pleased to collaborate with ExxonMobil and JERA to provide a clean energy resource for Vietnam in Hai Phong City.”