Russian gas heavyweight Novatek seeks to expand cooperation in Vietnam

Novatek, Russia’s second-largest natural gas producer, is looking to expand cooperation and investment in Vietnam, the company stated at a meeting with Prime Minister Pham Minh Chinh.

The talks took place on Monday as part of the Prime Minister’s official visit to Russia.

Novatek chairman and CEO Leonid Viktorovich Mikhelson said Vietnam is among the fastest-growing economies globally and is placing strong emphasis on energy development.

Novatek aims to deepen its presence in Vietnam, building on the comprehensive strategic partnership and longstanding cooperation between the two countries, the Vietnamese Government's news portal quoted him as saying.

Founded in 1994, Novatek focuses on the exploration, production, processing and trading of natural gas and liquid hydrocarbons. It is Russia’s second-largest gas producer after Gazprom and ranks among the world’s largest publicly traded gas companies by output.

The giant has developed large-scale LNG projects and proprietary liquefaction technologies. It is showing strong interest in Vietnam’s growing LNG market, including the Ca Na development in partnership with firms such as Zarubezhneft.

In response, Prime Minister Chinh said Novatek’s operations align with Vietnam’s long-term energy strategy, noting that energy cooperation has been a key pillar of bilateral ties for more than five decades.

"Vietnam aims to achieve economic growth of 10% or more and net-zero emissions by 2050. The country is implementing significant transformations, including energy transition. The target of 10% or more GDP growth, as well as the development of energy-intensive sectors, particularly artificial intelligence, require big supply of energy," he noted.

He thanked Russia for its support in developing Vietnam’s oil and gas sector, including state-owned Petrovietnam, which has grown into a multinational group.

Chinh said expanding cooperation, diversifying supply sources, and strengthening supply chains are increasingly important amid global uncertainty. Vietnam is also promoting technological innovation and restructuring in the energy sector.

He affirmed Vietnam supports Novatek’s plans to expand investment, provided the company complies with local regulations and competes fairly with other investors.

The cabinet leader noted that Vietnam is currently reviewing legal frameworks related to the power sector, and welcomes Novatek’s participation in developing LNG terminal projects, LNG-fired power plants in locations such as Hai Phong, Quang Ninh, Nam Du (An Giang province), Nghi Son (Thanh Hoa province), and Ca Na (Khanh Hoa), and stable LNG supplies.

The Prime Minister urged Novatek to work with local authorities and major state-owned energy firms such as Vietnam Electricity and Petrovietnam, as well as private enterprises, to implement projects, including the construction of large-scale LNG storage facilities in the country.

He added that Vietnam encourages domestic firms to cooperate with Novatek in natural gas liquefying technology.

On Monday aftenoon, in Moscow, Prime Minister Pham Minh Chinh held talks with Russian Prime Minister Mikhail Mishustin.

Immediately after the talks, the Vietnamese cabinet leader and his counterpart Mikhail Mishustin witnessed the signing ceremony of an agreement on cooperation in nuclear power plant construction in Vietnam.