Exxon, Japan's JERA to build LNG-to-power project in Vietnam
Exxon Mobil Corp XOM.N and Japan's biggest power generator, JERA, have agreed to build a power station and import facilities for the liquefied natural gas (LNG) to fuel it in the Vietnamese city of Haiphong, the companies said on Wednesday.
LNG is growing more popular as a power generation fuel in
southeast Asia as coal falls out of favour because of its impact on the
climate, while plentiful supplies of gas have sent prices LNG.AS tumbling in
recent years.
In statements, Exxon and JERA said they had signed a pact
with city authorities in the industrial centre of Haiphong, about 80 km (50
miles) from the capital, Hanoi, to build the so-called LNG-to-power project.
“Haiphong is industrializing at a fast pace, with an annual
growth rate of over 20 per cent. Therefore, our annual power consumption is
growing and is expected to double between 2020 and 2030,” Nguyen Van Tung,
chairman of the Haiphong People’s Committee, was cited as saying in the statements.
The project is subject to government approvals, the
companies added, but did not detail plant cost, size or estimated annual
imports of LNG.
JERA, which is owned by Tokyo Electric Power 9501.T and
Chubu Electric Power, 9502.T, is the world's largest individual buyer of LNG.
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