APPEC and Japan's JERA consider Vietnam gas-fired energy plant investment
A senior executive from Japan's largest utility, JERA, said on Wednesday that the company plans to invest in a gas-fired plant in Vietnam as part of its efforts to transition away from coal and towards cleaner fuels.
By 2030, power plants that use domestic gas or imported liquefied gas (LNG), with LNG as the major contributor, will be a vital source of energy in Vietnam. The total installed capacity of these plants is expected to reach 37.33 GW.
Izumi Kai is the chief executive of JERA Asia. She said that they are currently working with local partners and trying to talk to the Vietnamese government. JERA Asia would also be open to investing in projects already underway.
In recent years, Southeast Asian countries announced plans to expand LNG infrastructure in order to meet the growing demand. However, coal remains as the primary source of energy and its share has grown.
Kai stated that Vietnam is trying to operate multiple LNG projects within a very tight timeframe, and JERA was focused on finding the best solutions to avoid potential delays.
The government of Vietnam wants to expand LNG infrastructure in place of coal. But it's not that easy".
JERA Asia's investment in LNG or gas-powered projects in Asia is dependent on energy transition policies, and the dwindling of domestic natural gas reserves. Kai added: "The move towards LNG as power will continue."
JERA Asia, a company with investments and assets located in Bangladesh, also monitors the political developments of this South Asian nation where a new government interim has taken power following protests against job cuts.
Kai estimates that the delayed Meghnaghat plant of JERA will take "a few more months" to be commercially operational, as the country with over 170 millions people is facing a shortage of natural gas.
The weather has caused damage to one of Bangladesh's floating Storage Regasification Unit (FSRU), owned by Summit Power, which is used as an LNG Import Terminal.
JERA's $1bn Matarbari LNG onshore project, which Summit planned to develop together with JERA, is also uncertain.
Kai stated that the government had been re-evaluating the location of the Matarbari terminal onshore, partly because the FSRU was damaged. (Reporting and writing by Emily Chow; editing by Alexander Smith).
(source: Reuters)
