Japan’s JAPEX exits from LNG terminal project in northern Vietnam

Japan Petroleum Exploration Co., Ltd. (JAPEX) has withdrawn from a planned LNG terminal project in Vietnam’s northern port city of Hai Phong, the company said earlier this week.

The Japanese energy firm had been conducting feasibility studies for the project since January 2022 through its Ho Chi Minh City-based affiliate, ITECO JSC.

The project envisioned the development of an LNG procurement, storage and supply terminal at the Nam Dinh Vu Industrial Park in Hai Phong.

Under the initial plan, the facility would include berthing infrastructure capable of handling up to 650,000 tons of LNG annually, along with a 50,000 cubic meter storage tank. The terminal had been scheduled to begin commercial operations in 2025.

Since acquiring ITECO stake, JAPEX had evaluated several aspects of the project, including foundation design, potential customer demand and the selection of equipment suppliers. However, the company concluded that the project’s economic viability would be difficult to secure, prompting the decision to exit.

Following its decision to withdraw, JAPEX said it will transfer all of its shares in ITECO JSC to the company’s existing business partners.

Despite the withdrawal, JAPEX said it will continue exploring opportunities in Vietnam’s LNG sector. The company plans to conduct a feasibility study on LNG-based energy services for industrial parks in Hai Phong and other locations.

The study will be carried out under Japan’s fiscal 2025 International Demonstration Project on Technologies for Decarbonisation and Energy Transition, administered by the New Energy and Industrial Technology Development Organization (NEDO).

Vietnamese conglomerate Vingroup on September 26, 2025 commenced construction on the Hai Phong LNG-to-power plant, the largest of its kind in Vietnam.

The 4,800 MW Hai Phong LNG power plant, located within the Tan Trao Industrial Park, is developed by a joint venture between Vingroup and the group's subsidiary VinEnergo JSC. The nearly 100-hectare plant has a total investment of over VND178 trillion ($6.74 billion).

The facility will be constructed over five years and is scheduled to begin operations by late 2030. It will supply about 9.6 billion kWh per year in Phase 1 and 19.2 billion kWh per year in Phase 2, serving both the Tan Trao Industrial Park and the national grid.

Hai Phong authorities recently proposed adding an LNG terminal project to the Nam Do Son port area in the northern city to support Vingroup's LNG-to-power plant.

The Hai Phong People’s Committee sent a proposal to the Ministry of Construction seeking approval to include an LNG terminal at Nam Do Son in the detailed master plan for Vietnam’s seaport system and the detailed development plan for Hai Phong’s port land and waters for 2021-2030, with a vision to 2050.