Greenwell Energy Canada seeks to supply LNG for Vietnam

Greenwell Energy (Canada), under the United States-based Greenwell Energy, plans to build an LNG terminal in Vietnam’s central province of Thanh Hoa to supply LNG in the country.

A Greenwell Energy delegation, led by managing director Kevin Sullivan, made the suggestion at a Monday meeting with Vietnamese Deputy Minister of Industry and Trade Nguyen Hoang Long.

The firm aims to build an LNG terminal in Nghi Son town of Thanh Hoa, in order to deliver LNG to nearby thermal power plants and other customers.

Backing the investment, Deputy Minister Long urged Greenwell Energy (Canada) to collaborate with LNG importers in Vietnam, including state-owned Petrovietnam and its subsidiary PV Gas to discuss details. The ministry is willing to help firms partner up, he added.

Long also noted a challenge that LNG-fired power in Vietnam is costly, with its prices higher than other sources such as coal-fired power and hydropower, so the demand for LNG power is low.

He suggested Greenwell Energy (Canada), as an LNG supplier, should negotiate medium-term and long-term contracts to secure suitable prices, versus high prices in short-term contracts.

Long also highlighted Vietnam is set to utilize a major portion of LNG-fired power in its system soon, so collaborating with Greenwell Energy can help the country ensure its energy security and reduce its trade imbalance with some partners.

In August, Thanh Hoa province released bidding documents for the $2.45 billion, 1,500 MW Nghi Son LNG-to-power plant. The project will also feature an LNG jetty, a 230,000 cubic meters LNG storage facility, an onshore regasification station of 1.2 million tons a year, a gas pipeline system connecting a regasification station with the LNG-fired power plant for 1.2 million tons a year; a 500 kV power transmission line; and other technical infrastructure.

Located to the south of Nghi Son port of Thanh Hoa province, the project will cover 68.2 hectares, including 64.2 hectares for the power plant, warehouse, regasification system, wharf; and four hectares for ship anchoring zone. It is set to become operational by 2030.