PetroVietnam Gas Talking to Exxon Mobil, Novatek on LNG Supply

(Reuters) — PetroVietnam Gas said on Wednesday it was in separate talks with U.S. energy giant Exxon Mobil and Russia's Novatek on LNG cooperation, as it seeks to secure long-term supplies for Vietnam's future LNG-fired power plants.

Regional manufacturing hub Vietnam aims to develop a fleet of 13 LNG-fired power plants with a combined capacity of 22.4 gigawatts by 2030, with the first scheduled to be operational from late next year.

PetroVietnam Gas discussed with Exxon Mobil the possibility of LNG supplies for the commercial operation of its Thi Vai LNG Terminal in southern Vietnam, the Vietnamese firm said in a statement, following a meeting between its chief executive officer Pham Van Phong and Exxon Mobil representatives.

The two companies also discussed opportunities to cooperate in upstream projects, it added.

"Exxon Mobil is evaluating various LNG supply opportunities in Southeast Asia, including Vietnam," Exxon Mobil said in an emailed statement.

PetroVietnam Gas also separately met with representatives of Russia's Novatek, which it said is interested in supplying it with LNG for the 2023-2026 period, according to the statement.

"Boosting trade and investment ties with such global energy leaders as Exxon Mobil and Novatek is the key for the development of PetroVietnam Gas and for the country's gas industry," the statement said.

Novatek said it had no immediate comment to make.

Thi Vai LNG Terminal in Ba Ria Vung Tau province will primarily supply two gas-fired power plants with a combined capacity of 1.5 gigawatts.

Those are currently being built in the neighboring province of Dong Nai by PetroVietnam Power Corp. at a cost of $1.4 billion.

The Nhon Trach 3 and Nhon Trach 4 power plants are set to start generation in the fourth quarter of next year and the second quarter of 2025, respectively, according to PetroVietnam Power.

PetroVietnam Gas said the terminal will receive Vietnam's first ever LNG cargo on Monday next week.

It said in May the cargo of 50,000 to 70,000 tonnes from Singapore-based Shell Eastern Trading was for test running the terminal.

A PetroVietnam Gas source said on Wednesday the cargo of nearly 70,000 tonnes of LNG is heading to the terminal from Indonesia's Bontang Port.

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