PetroVietnam Gas Engages in Talks with ExxonMobil and Novatek Regarding LNG Supply

US: On Wednesday, PetroVietnam Gas announced that it is engaged in discussions with ExxonMobil, a U.S. energy giant, and Novatek, a Russian company, separately for collaborating on Liquified Natural Gas (LNG). As a key player in Vietnam's gas industry, PetroVietnam Gas Joint Stock Corporation (PV Gas) holds a prominent position within the Vietnam National Oil and Gas Group (PVN). The objective behind this initiative is to ensure long-term supplies for future LNG-fired power plants in Vietnam. By 2030, Vietnam aims to establish a manufacturing hub for the region with a total of 13 LNG-fired power plants generating 22.4 gigawatts of energy collectively; the first plant is set to become operational from late next year.

PetroVietnam Gas has shared in a statement that it met with ExxonMobil representatives to discuss the feasibility of procuring LNG supplies to support the commercial operations of its Thi Vai LNG Terminal in southern Vietnam. The meeting involved talks between CEO Pham Van Phong and ExxonMobil officials. The statement further confirms that the two companies also discussed collaborating on upstream projects.

ExxonMobil is currently exploring different avenues for LNG supply opportunities in Southeast Asia, with Vietnam being one of the potential options. In a separate statement, PetroVietnam Gas revealed that they had discussions with representatives from Novatek, a Russian company that expressed interest in supplying them with LNG between 2023-2026. The statement emphasized the importance of establishing robust trade and investment relationships with global energy leaders like ExxonMobil and Novatek to drive the development of PetroVietnam Gas and the country's gas industry.

Novatek has expressed its interest in collaborating with Vietnamese enterprises on LNG, citing Vietnam's expanding market and long-term plans to develop gas-fired power generation projects and infrastructure initiatives such as LNG-to-power facilities and LNG regasification terminals, according to an email sent to Reuters. The 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,

According to PetroVietnam Power, Nhon Trach 3 and Nhon Trach 4 power plants are scheduled to commence generation in Q4 2022 and Q2 2025, respectively. According to an announcement made by PetroVietnam Gas back in May, the upcoming delivery of 50,000 to 70,000 tonnes of LNG from Shell Eastern Trading in Singapore was initially intended for a trial run at the terminal. The shipment will mark Vietnam's first-ever import of LNG and is expected to arrive on Monday next week. On Wednesday, a source from PetroVietnam Gas revealed that a shipment of nearly 70,000 tonnes of LNG from Indonesia's Bontang Port is en route to the terminal.