AsianOil: JERA to pursue LNG-to-power in Vietnam

Japan’s JERA announced on March 1 that it had kicked off full-scale operations in Vietnam. The company – a 50:50 joint venture between utilities Tokyo Electric Power Co. (TEPCO) and Chubu Electric Power – intends to pursue LNG-to-power projects through its new Vietnamese unit.
JERA said it had “positioned Vietnam as a priority country” and was “considering the development of several LNG-to-power projects that will contribute to both decarbonisation and to a stable supply of energy that supports economic growth”. The company’s JERA Energy Vietnam subsidiary has established Hanoi as its operational base in the country.
The announcement from JERA comes days after media reported that it was partnering with ExxonMobil on a Vietnamese LNG-to-power project. Nikkei Asia said on January 27 that the project would entail a 6mn tonne per year (tpy) LNG import terminal and a 4.5-GW power plant in the northern Vietnamese city of Haiphong. According to the newspaper, JERA will be responsible for building the facility and supplying LNG – potentially redirecting it from Japan in the event of a shortage.
This comes as Japan – the world’s largest importer of LNG until it was edged out by China last year – tries to make inroads into emerging Asian markets for the super-chilled fuel. According to JERA’s statement, it will also explore renewable investment opportunities in Vietnam as it advances its LNG-to-power business there and explores other opportunities for collaboration with local companies.