In January 2022, Japex announced that it had signed a share purchase agreement with Vietnam’s Iteco JSC, the developer of the LNG import development, and the partners started feasibility studies.
The project involves constructing an LNG terminal, including berthing facilities capable of receiving and dispatching up to 650,000 tons of LNG annually and a 50,000 cbm LNG storage tank. in the Nam Dinh Bu Industrial Park in Hai Phong City, Vietnam.
It also includes LNG procurement, storage, and supply.
Since acquiring shares in October 2022, Japex has been looking into base foundation designs, potential customer development, and candidate suppliers.
However, Japex has now concluded that “it is difficult for us to secure the economics of the project and therefore we have decided to withdraw from the project,” the company said.
Japex will transfer all of its shares in Iteco JSC to Iteco’s business partners, the firm said.
The company did not provide further details.
In Vietnam, following selection for the FY2025 “international demonstration project on Japan’s technologies for decarbonization and energy transition” by the New Energy and Industrial Technology Development Organization (NEDO), Japex will conduct a feasibility study on energy services using LNG for industrial parks in Hai Phong City and other locations, it added.
Vietnam’s LNG terminals
Vietnam currently has two LNG import terminals, but there are more terminals in the pipeline.
Also, PV Power launched commercial operations at its Nhon Trach 3 and 4 LNG power plants in December last year.
Vietnam’s first LNG power plants have a total capacity of 1.6 GW.
These facilities are being supplied from the PV Gas-operated Thi Vai LNG import facility, Vietnam’s first LNG import terminal.
This facility has a capacity of 1 mtpa, but PV Gas plans to boost the capacity to 3 mtpa.
In addition, Nebula Energy’s AG&P LNG and Vietnam’s Hai Linh received the first commissioning cargo last year at their Cai Mep LNG import terminal in Vietnam.
The Cai Mep facility is Vietnam’s second LNG import facility, adding to the PetroVietnam Gas-operated Thi Vai LNG terminal in Ba Ria-Vung Tau province.
The terminal has a capacity of 3 mtpa, expandable to 6 mtpa.
