In July 2019, Korea Gas Corporation (KOGAS) entered into a Memorandum of Understanding (MOU) with Energy Capital Vietnam (ECV) that provides a framework for the development of a privately funded liquefied natural gas (LNG) regasification terminal, storage, gas supply system and 3,200 MW gas-fired power project near Mui Ke Ga in the southern province of Binh Thuan. Other investors include Tokyo Gas, Marubeni Corporation, and the US Trade and Development Agency.
Headquartered in Dallas, Texas in the US, ECV focuses on direct investment opportunities into Energy and Infrastructure in Vietnam. Owned by the South Korean government, KOGAS is one of the world’s largest LNG importers, and has vast experience and expertise in building and operating LNG regasification terminals and distribution network.
Foreign investors have expressed high interest in Vietnam’s natural gas and LNG projects, due to country’s growing demand for electricity. LNG consumption in Vietnam is expected to grow at 10% annually over the next decade, driven by government efforts for cleaner alternatives, and LNG import projects to supplement declining domestic production. The country’s current power plan – the Power Development Plan VII, revised in 2016 – provides for the construction of 8 GW of new gas-ﬁred capacity across Kien Giang, Dong Nai, Quang Nam and Binh Thuan provinces between 2021 and 2027. The projects are likely to be retained in the forthcoming Energy plan.
The current pipeline of gas-to-power projects is believed to have a good chance of coming to fruition due to good availability of funding, rising foreign capital inflows into the domestic power, natural gas and LNG sectors and rising government support for reducing emissions and promoting greater gas use.
(Sources: VietnamNews, Energy Capital Vietnam)