PetroVietnam Gas has announced its ongoing discussions with Exxon Mobil Corporation (NYSE: XOM) and Russia’s Novatek to collaborate on liquefied natural gas (LNG) projects. This partnership aims to secure long-term supplies for Vietnam’s future LNG-fired power plants.
Vietnam, a leading manufacturing hub in the region, has set its sights on constructing a fleet of 13 LNG-fired power plants by 2030, boasting a total capacity of 22.4 gigawatts. The first plant is scheduled to become operational by late next year.
In a recent statement, PetroVietnam Gas revealed that it engaged in talks with ExxonMobil regarding the provision of LNG for the commercial operations of the Thi Vai LNG Terminal located in southern Vietnam. The meeting, held between PetroVietnam Gas CEO Pham Van Phong and ExxonMobil representatives, also explored potential collaborations in upstream projects.
In addition, PetroVietnam Gas held discussions with representatives from Russia’s Novatek. The Vietnamese company disclosed that Novatek has expressed interest in supplying LNG to PetroVietnam Gas between 2023 and 2026.
The Thi Vai LNG Terminal, situated in Ba Ria Vung Tau province, will primarily cater to two gas-fired power plants, jointly generating 1.5 gigawatts. These power plants, currently under construction in the neighboring Dong Nai province by PetroVietnam Power Corp, come with a price tag of $1.4 billion.
According to PetroVietnam Power, the Nhon Trach 3 and Nhon Trach 4 power plants are slated to begin generating electricity in the fourth quarter of next year and the second quarter of 2025, respectively.
Moreover, PetroVietnam Gas has announced that the Thi Vai LNG Terminal is set to receive Vietnam’s first-ever LNG shipment next Monday.
In May, the company received a cargo of 50,000 to 70,000 tonnes from Shell Eastern Trading based in Singapore. This cargo was intended for conducting test runs of the terminal.