Novatek to develop LNG project in Vietnam

On May 22, Novatek signed a memorandum of understanding with the Ninh Thuan People’s Committee to develop an integrated energy-generating project using LNG in Vietnam. The signing ceremony occurred in the framework of the visit of Prime Minister Nguyen Xuan Phuc to Russia.

According to Novatek, the energy-generating project will provide for the delivery of LNG, utilising existing infrastructure as well as developing new infrastructure, including the construction of an LNG regasification terminal and new gas-fired power plants within Vietnam.

The partners of the proposed project include Siemens AG, Total Gas & Power Business Services S.A.S, and Vietnam A&A Technology Investment Co., Ltd.

“The strong economic growth in Vietnam generates additional demand for energy, which can be sustainably met with the development of an integrated gas generation project. The building of gas-fired power generation increases the demand for us to provide competitively priced LNG supplies to the country. This project could be realized in a relatively short period of time with the support of the Ninh Thuan province,” said Leonid Mikhelson, chairman of the Novatek Management Board.

Along with Novatek, Ninh Thuan is also an attractive investment destination for Gulf Energy Development (Gulf) from Thailand. Notably, in March the group proposed investing $7.8 billion in the Ca Na LNG project in Ninh Thuan province for the second time, showing its determination to develop the project.

Gulf plans to develop an LNG warehouse and gas-fired power complex with the total capacity of 6,000MW in Ca Na commune, Thuan Nam district. The construction may be implemented under the build-operate-transfer (BOT) model.

According to Pham Van Hau, deputy chairman of the Ninh Thuan People’s Committee, Gulf is seeking approval for the planning of Ca Na power centre. Once the planning is approved, the province will issue criteria to select investors for the project and Gulf is one of the potential investors.