JAKS Resources Bhd., a construction and power holdings company from Malaysia, has inked an MoU with T&T Group JSC to explore possibilities to co-develop the 1,500MW Quang Ninh 2 liquefied natural gas (LNG)-to-power project in the northern province of Quang Ninh.
|Malaysia's JAKS joins forces with Vietnamese partner to develop a 1,500-megawatt LNG-to-power project |
According to the agreement, JAKS and T&T will agree on the approach to implement the LNG-to-power project, which covers the place, design, technology, and infrastructure related to the import terminal and the power plant, as well as the selection of LNG and gas-fired power solutions suppliers.
JAKS will act as the strategic investor in charge of the engineering, construction and commission process to facilitate the project’s design, engineering, construction, and operations. Meanwhile, T&T Group will be accountable for all legal matters related to the LNG-to-power project.
Andy Ang Lam Poah, CEO of JAKS said that there is vast potential to expand JAKS’ footprint in Vietnam, especially in energy generation, given that the Vietnamese economy is expected to grow 6.6 per cent in 2021 and electricity demand is projected to continue to rise.
"Importantly, under the draft Power Development Plan VIII (2021-2030), the Vietnamese government strongly supports the concept of using the LNG-to-power projects to provide sustainable and environmentally friendly energy to offset environmental concerns as well as the anticipated power shortage in 2021-2035," he added.
The tie-up will pave the way for JAKS to consolidate its power and energy business division in Vietnam. The Malaysian company's first foray into the country's energy sector was through the construction of the 1,200MW Hai Duong Power Plant, which has fully commenced commercial operations in January.
It is expected that the new partnership between JAKS and T&T will help address Vietnam's growing domestic electricity demand, the rising gas demand for gas-fired generation plus the required importation of LNG into Vietnam.