A unit of US energy giant ExxonMobil and Japan’s largest power generation firm JERA are planning to build a power plant and LNG import infrastructure in the Vietnamese city of Hai Phong.
The duo said in a statement on Wednesday they signed a memorandum of understanding for the LNG-to-power project. This includes the Hai Phong city government.
Furthermore, the duo says LNG-fueled power will provide a “more environmentally-friendly” alternative to the currently proposed coal projects.
“Hai Phong is industrializing at a fast pace, with an annual growth rate of over 20 percent,” Nguyen Van Tung, chairman of the Haiphong People’s Committee, said in the statement.
“Therefore, our annual power consumption is growing and is expected to double between 2020 and 2030,” he said.
ExxonMobil has already submitted a project master plan for review and potential inclusion in Vietnam’s National Power Development Plan.
Additionally, Hai Phong City submitted a letter to include power demand with potential locations of power plants and LNG infrastructure.
The project submissions are pending government approvals.
