US businesses keen to pour investment capital into Vietnamese gas power sector

According to this vision, construction work on the LNG (Liquefied Natural Gas) Chan May Gas Power Plant Project in the Chan May - Lang Co Economic Zone in the central province of Thua Thien Hue will feature a total design capacity of 4,000 MW. Work on the project is set to start in the first quarter of 2021 and its first phase for commercial operations will begin in 2024.

This represents an investment project in the form of an IPP (independent power project), with an estimated total investment of US$6 billion expected to create breakthroughs for the domestic energy industry.

During the Vietnam - US Business Summit which was recently held in Hanoi, John Rockhold, general director of Chan May LNG Joint Stock Company, was appreciative of his firm role as the primary investor in the project, along with noting the prospects for renewable energy schemes in the nation. Most notably, the LNG Chan May Gas Power Project has been granted a generous land fund by the locality.

Whilst natural gas power may still be new to the country, US enterprise will focus heavily on LNG investment, Rockhold said, while underlining the need to hold further discussions and obtain an agreement from state-owned enterprises which are involved in power transmission nationwide, especially Vietnam Electricity (EVN).

At present, the Vietnamese need for added energy investment is up to tens of billions of US$ each year, while, many US businesses have strong financial potential, Rockhold noted.

Furthermore, LNG Chan May Gas Power is not the only project with US capital pouring into the local gas power sector. Previously, the Ministry of Industry and Trade and AES Group had signed a Memorandum of Understanding (MoU) on the implementation of the Son My 2 Gas Power Plant, which features LNG gas with a capacity of 2,200 MW.

This comes just a few months after Irtiza Sayyed, global chairman of Exxon Mobil, said the group wants to take advantage of opportunities to invest in the domestic energy sector. Indeed, Exxon Mobil desires to invest in port chains, LNG gas depots, and LNG power plants, with the majority of modern technology in Hai Phong.

The scale of the power generation project by LNG has a capacity of more than 4,000 MW and is expected to come into operation in the 2025 to 2030 period.

In relation to the gas-fired power chain with a capacity of approximately 3,000 MW in Long An, Exxon Mobil will ensure a complete continuous supply of LNG directly from the US and other nations. The import of LNG will therefore contribute to building a harmonious and mutually beneficial trade balance between both sides.

Upon addressing at the Vietnam-US Business Summit, Adam Boekhold, chief executive officer of US International Development Finance Corporation, said US enterprises see plenty of investment and business opportunities in the gas power sector. Over the course of the next few years, investment capital from the US in the ASEAN energy sector will witness strong growth of billions of US$, with the Mekong Delta region being a key area.

According to Rockhold, the demand for energy investment in the nation may be up to tens of billions of US$ annually, with many US businesses enjoying strong financial potential. Moving forward, a number of signed agreements will swiftly be brought into effect by removing obstacles between the two sides.