ExxonMobil and Jera signed on Wednesday a Memorandum of Understanding (MoU) to work together on the potential construction of an LNG-to-power project in Hai Phong, Vietnam.
The companies said in a joint statement that the integrated project would include a power plant and an LNG import terminal, which would provide Hai Phong with “a more environmentally friendly alternative to the currently proposed coal projects.”
The local government has recommended the project to be approved, but ExxonMobil and Jera are still waiting on Vietnam’s approval, Kallanish Energy reports.
“Hai Phong is industrializing at a fast pace, with an annual growth rate of over 20%. Therefore, our annual power consumption is growing and is expected to double between 2020 and 2030,” said Nguyen Van Tung, Chairman, Hai Phong People’s Committee. “Hai Phong City is pleased to collaborate with ExxonMobil and Jera to provide a clean energy resource for Vietnam in Hai Phong City.”
ExxonMobil said that as a gas industry leader with strategic access to LNG supplies around the world, it’s “well-positioned to supply cleaner, reliable energy to power Vietnam’s future.”
Jera noted Vietnam is a “very important” country for the company, while also in line with the goals of the Japan U.S. Strategic Energy Partnership of ensuring energy security to Vietnam.
This post appeared first on Kallanish Energy News.