Exxon Mobil Corp, JERA, Japan’s biggest power generator, JERA, and the Vietnamese city of Hai Phong have signed an agreement to build an integrated LNG power station in the port city.
Coal is slowly going out of favor as countries across the world are transitioning to more environmentally friendly fuels to meet the climate crisis. LNG is gaining in popularity as a power source in many Southeast Asian countries as supply increase has brought the prices down for the fuel.
“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.”
“ExxonMobil is honored to work with JERA and Hai Phong City to explore innovative approaches to bring about competitive LNG-to-power projects in Vietnam,” said ExxonMobil Hai Phong Energy director Irtiza Sayyed. “As a gas industry leader with strategic access to LNG supplies around the world, ExxonMobil is well-positioned to supply cleaner, reliable energy to power Vietnam’s future.”
ExxonMobil has submitted its project plans for consideration. Hai Phong City has submitted a letter of recommendation to include power demand with potential locations of power plants and LNG import infrastructure.
It is estimated that the plant will be built with an investment of $5.09 billion and the LNG power plant will begin power production from 2026-27. It will have an initial capacity of 2.25GW, expanded to 4.5GW by 2029-2030.
The project will include the construction of an LNG, terminal with an annual capacity of six million tonnes.
JERA, which is owned by Tokyo Electric Power and Chubu Electric Power, is the world’s largest individual buyer of LNG and is the largest thermal power generator in Japan. The company’s managing executive officer and senior operating officer James H. Vigil. in a statement said, “JERA is extremely pleased to participate in the Hai Phong project being developed by ExxonMobil and we are eager to utilize our expertise in the entire LNG value chain for successful project implementation. We have more than 50 years of experience as the world’s first utility who introduced LNG to the power industry.”
Vietnam is a very important country for JERA, and we would like to contribute to its prosperity through various initiatives, including this important project.”
This agreement is in line with the Japan US Strategic Energy Partnership (JUSEP) to support energy access and investments for the sustainable economic development and energy security of Vietnam. LNG-fueled power in Hai Phong will provide a more environmentally friendly alternative to the proposed current coal projects in the master plan.
The Vietnamese government said the LNG plant may use fuel imported from either the US or other countries.
The Institute of Energy of Vietnam has started work on a master power development plan for the country. This would include the construction of 22 LNG power plants with a combined capacity of up to 108.5GW. The first of these is expected to become operational by 2023, according to a Vietnamese news report.
The post Exxon, JERA of Japan sign MOU with Vietnam for LNG power station appeared first on Industry Leaders Magazine.