PetroVietnam Gas Corporation (PV Gas) said on July 6 that it is negotiating separately with energy giants ExxonMobil (US) and Novatek (Russia) on cooperation in liquefied natural gas (LNG) to ensure long-term supply for Vietnam's future liquefied natural gas power plants.
PetroVietnam Gas has discussed with ExxonMobil the possibility of supplying LNG for commercial operations at the Thi Vai LNG Terminal in Ba Ria-Vung Tau province, the company said in a statement, following a meeting between CEO Pham Van Phong and ExxonMobil representatives. The two sides also discussed opportunities for cooperation in upstream projects.
Vietnam is looking to secure long-term LNG supplies to develop 13 LNG-fired power plants with a total capacity of 22.4 GW by 2030.
PV Gas' partners from ExxonMobil. Photo: PV Gas
The Thi Vai LNG terminal will mainly supply the Nhon Trach 3 and Nhon Trach 4 gas-fired power plants with a total capacity of 1.5 GW, which are being built by the Vietnam Oil and Gas Power Corporation (PV Power) in Dong Nai at a cost of 1.4 billion USD. These two plants will generate electricity in the fourth quarter of 2023 and the second quarter of 2025, respectively, PV Power said.
“ExxonMobil is evaluating various LNG supply opportunities in Southeast Asia, including Vietnam,” ExxonMobil said in an emailed statement.
According to the statement, PV Gas also met privately with representatives of Russia's Novatek, a company interested in supplying LNG for the 2023-2026 period.
PV Gas representatives discuss with partners from Novatek. Photo: PV Gas
Novatek said it is “very keen to cooperate with Vietnamese companies on LNG, given Vietnam’s growing market and long-term vision to develop gas-fired power generation and infrastructure projects, including LNG-to-power conversion facilities and LNG regasification stations in the country.”
ExxonMobil is one of the world's largest oil and gas producers, founded in the United States in 1999 through the merger of Exxon and Mobil, two "descendants" of the Standard Oil company owned by oil tycoon John Rockefeller. As of June 8, 2023, the company has a market capitalization of 352.79 billion USD, the highest in the world .
Meanwhile, Novatek is Russia's largest independent natural gas producer with more than 20 years of experience in the oil and natural gas sector. The company is mainly engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Novatek's total revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) in 2021 were RUB 1,157 billion ($12.75 billion) and RUB 712 billion ($7.8 billion), respectively .
Nguyen Tuyet (According to Reuters, Seeking Alpha, statica.com, Novatek)
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