Japanese firm to join Vietnam’s LNG market

VOV.VN - The Japan Petroleum Exploration Co. Ltd. (JAPEX) and Vietnam’s ITECO JSC have recently signed a share purchase agreement, along with a pact detailing comprehensive co-operation that involves the procurement, storage, and supply of liquefied natural gas (LNG) in the nation.

Each sides’ collaboration agreements primarily revolves around project design and construction, in addition to operation and maintenance, procurement of LNG, finance, sales and marketing, training, and developing local human resources in the field of LNG, among others.

Currently, the supply of natural gas in the country’s northern region is on a downward trend and is forecast to face a shortage in the future. The joint work between JAPEX and ITECO is therefore expected to help increase supply sources.

Furthermore, the companies will team up in order to import, store, distribute, and supply LNG by both pipelines and tank trucks, with their business project starting operating in the final quarter of 2024.

Matthew Tan, senior vice president of JAPEX, said the firm aspires to promote the diversification of clean energy supply solutions, especially LNG, within the Vietnamese market.

In the long run, both JAPEX and ITECO will aim to introduce a variety of clean fuel solutions, whilst simultaneously seeking opportunities in new projects, he added.

According to data released by the Foreign Investment Agency under the Ministry of Planning and Investment, as of December 20, 2021, Japan ranked third among foreign investors in Vietnam, with a total registered capital of nearly US$ 3.9 billion, up 64.6% over the same period from last year.