Russia’s Novatek is considering exporting liquefied natural gas (LNG) to Vietnam for existing and future power plants, said the Russian gas company’s CEO, Leonid Mikhelson.
He told reporters that he did “not know when” a project that the company planned to implement in Vietnam in partnership with Siemens and TotalEnergies will start, reported Interfax on 28 October.
“There is another [project] there. And in principle the consumer there, a power plant, is being built, launched in 2024. And there is an existing one in the same region. I just spoke with the minister, it uses about 1 billion cubic meters of gas, while PetroVietnam’s own production is falling, so we could actually add [gas] there. The whole question is the cost,” Mikhelson said, adding that the company is also considering building a regasification terminal in Vietnam.
Last December, the Russian LNG exporter signed a cooperation agreement with Vietnam’s PetroVietnam on developing potential liquefied natural gas (LNG) and power projects in the southeast Asian country.
In December 2017, Novatek signed a memorandum of understanding with French oil and gas major TotalEnergies and German engineering giant Siemens. Under the memorandum, the companies said they would pursue opportunities to collaborate on LNG sales and to develop the infrastructure for newly built gas-fired generation plants in the Vietnamese market. Given Western-led international economic sanctions on Russia in the wake of the Ukraine conflict it seems unlikely that the partnership will progress anytime soon.
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