Russia's Novatek enters LNG market in Vietnam

August 11, 2021 | 10:48
Russian private natural gas producer and exporter Novatek has established a representative office in Hanoi to sell liquefied natural gas (LNG) in Vietnam.
Russia's Novatek enters LNG market in Vietnam
Novatek is looking to play a part in increasing gas power capacity in Vietnam by 2030

The representative office will facilitate Novatek's expansion into the global gas markets and provide continuous support for the company's prospective energy projects in Vietnam. The main tasks of the office will be to interact with partners, state-owned and private companies in Vietnam to define and develop new projects to supply LNG from Novatek’s portfolio to the Vietnamese market.

“Vietnam offers Novatek the prospects of developing gas-related energy projects in the dynamically growing Asian-Pacific region,” said Leonid V. Mikhelson, chairman of the Management Board, “and is of strategic importance for us in implementing our long-term aim of delivering affordable and secure natural gas for many decades in a sustainable manner.”

Novatek is the largest independent natural gas producer in Russia. In 2017, it entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the company is engaged in the exploration, production, processing, and marketing of natural gas and liquid hydrocarbons.

With the establishment of the representative office, Novatek aims to take an early position in the country's gas-fired electricity market. Specifically, Vietnam's draft Power Development Plan 8 has proposed a four-fold increase of the current gas-fired power capacity to 28GW by 2030, or 21 per cent of the system capacity. The majority of the new capacity is expected to be fuelled by imported LNG.

By Thanh Van

What the stars mean:

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