PV Gas discusses LNG supplies with American, Russian firms

Petrovietnam's subsidiary PV Gas is discussing purchases of liquefied natural gas (LNG) from the U.S.'s ExxonMobil and Russia's Novatek, the latter for the 2023-2026 period.

PV Gas announced this Wednesday, but did not divulge details.

The discussions with Novatek were held with a delegation led by director in charge of business development Golm Elena. The two sides discussed LNG purchases for the 2023-2026 period as also the progress of LNG-to-power projects in Vietnam.

Novatek, a major natural gas producer in Russia, is considering shipping LNG to Vietnam for existing and future power plants, CEO Leonid Mikhelson had said last year.

In December 2021, PV Power, a sister firm of PV Gas, signed an agreement with Novatek on electricity and energy development in Vietnam.

With U.S, giant ExxonMobil, PV Gas discussed LNG supplies for the Thi Vai LNG Terminal in the southern coastal province of Ba Ria-Vung Tau. The two sides also weighed cooperation on upstream oil and gas projects in Vietnam.

Upstream projects involves search for deposits of oil or gas (exploration) and then its extraction through drilling or other methods.

ExxonMobil had earlier evinced interest in researching and investing in clean energy power plants in the northern port city of Hai Phong.

ExxonMobil Energy Haiphong Ltd, the Hai Phong People’s Committee and Japanese power company JERA signed in October 2020 a memorandum of understanding on cooperation to develop an LNG power complex in Hai Phong.

However, no LNG-fired power project in Hai Phong was named in the national power development plan called PDP VIII.

According to the Politburo's Resolution 55 on Vietnam's energy development until 2030 with vision until 2045, the country would build infrastructure to import eight billion cubic meters of LNG in 2030 and 15 billion cubic meters in 2045.

Meanwhile, the newly-approved PDP VIII sets a target of raising LNG-fired power generation from zero in 2020 to 22,400 MW in 2030, or 14.9% of the total.

LNG is considered a cleaner power source than coal and oil with lower carbon emissions.

Last month, PV Gas became the country’s first recipient of a license to import and export LNG from the industry ministry. The firm has already completed building needed facilities, including the 180,000-cubic-meter LNG Thi Vai terminal in Ba Ria-Vung Tau province.

The firm is scheduled to receive its first LNG carrier at the terminal on July 10.

PV Gas also signed a confirmation notice in May with leading global supplier Shell, whereby the latter will deliver the first LNG cargo to Vietnam. The import will enable the commissioning and commercial operations of the Thi Vai LNG Terminal. Once commissioned, it will be the first and largest LNG terminal in Vietnam.

Vietnam has no LNG power plants operational at present. PV Power’s Nhon Trach 3 & 4 power plants, with a combined capacity of 1.6 GW, are Vietnam’s first LNG-to-power projects. These are under construction in the southern province of Dong Nai.