Japanese firms establish joint venture for LNG project in Vietnam

November 10, 2022 | 12:40

(0) user say

Japanese companies Tokyo Gas and Marubeni have joined forces with Petrovietnam Power and local machine manufacturer Colavi to establish a joint venture for an LNG-to-power project in Vietnam.

Japanese firms establish joint venture for LNG project in Vietnam

Illustration photo. Source: baodautu.vn

The joint venture company Quang Ninh LNG Power JSC (QNLP) will conduct a feasibility study and a project development plan for the LNG to power project in the Cam Pha District of Quang Ninh Province after receiving an Investor Registration Certificate from the Vietnamese government on July 11.

The combined cycle gas-fired power plant will be the largest of its kind in Vietnam with a 1,500 MW generation capacity. It acts as an onshore LNG receiving, storage, and regasification facility for the Vietnam Electricity Group.

Once shareholders have made a final investment decision, QNLP will evaluate the economic and technological viability of the project with the goal of bringing it to full operation. The project is slated to be put into commercial operation in the second half of 2027.

Vietnam has high expectations for newly-constructed, large-scale power plants with great efficiency due to its increasing demand for electricity as a result of its rapid economic growth. Vietnam is boosting gas-fired power as part of its efforts to transition away from coal- and oil-based energy. However, the country does not import any LNG.

Tokyo Gas, Japan's biggest city gas supplier, has engaged in LNG and natural gas-related projects in Australia, North America, and Southeast Asia. Meanwhile, Marubeni owns and manages power generation facilities with a combined capacity of about 12GW in 21 nations, including Japan.

Japanese companies will support the development of the LNG-to-gas project in Vietnam with a view to supporting sustainable economic growth for the country based on the knowledge and expertise accumulated via these businesses.

Number of profitable Japanese firms operating in Vietnam rises

The proportion of Japanese enterprises operating in Vietnam forecast to be profitable in business activities last year is 54.3 percent, up 4.7 points compared to 2020.

Nearly 55 per cent of Japanese firms in Vietnam gained profits despite pandemic

The proportion of profitable Japanese companies in Vietnam is expected to have climbed by 4.7 points in 2021, compared to 2020, equivalent to 54.3 per cent.

Japanese firms in Vietnam turn eyes to non-manufacturing industries

There was a significant increase in Japanese investment in Vietnam’s non-manufacturing industries, such as retailing, education, healthcare, energy, finance and insurance, transport and real estate, according to a 2021 survey of the Japan External Trade Organisation (JETRO) on 700 Japanese FDI enterprises in Vietnam.

By Thanh Van

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional