Exxon, Japan's JERA to build LNG-to-power project in Vietnam

Reuters | Jessica Jaganathan Thursday | 10/29/2020 10:37

A logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. Photo by Reuters/Sergio Moraes.

Exxon Mobil and Japan's biggest power generator, JERA, have agreed to build a power station and import facilities for LNG to fuel it in Haiphong, the companies said on Wednesday.

LNG is growing more popular as a power generation fuel in southeast Asia as coal falls out of favour because of its impact on the climate, while plentiful supplies of gas have sent prices LNG.AS tumbling in recent years.

In statements, Exxon and JERA said they had signed a pact with city authorities in the industrial centre of Haiphong, about 80 km (50 miles) from the capital, Hanoi, to build the so-called LNG-to-power project.

“Haiphong 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,” Nguyen Van Tung, chairman of the Haiphong People’s Committee, was cited as saying in the statements.

The project is subject to government approvals, the companies added, but did not detail plant cost, size or estimated annual imports of LNG.

JERA, which is owned by Tokyo Electric Power 9501.T and Chubu Electric Power, 9502.T, is the world's largest individual buyer of LNG.

Source: Reuters

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