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Tokyo Gas and Marubeni to build a nearly $2 billion LNG power plant in Vietnam

Marubeni is looking to diversify operations to Vietnam

Japanese utility Tokyo Gas and trading house Marubeni will build a liquefied natural gas (LNG) power plant in Vietnam.

As the largest Japanese provider of city gas serving more than 11 million customers for over 130 years, Tokyo Gas is betting big on Vietnam’s vast potential for LNG.

The Tokyo-based corporation and Marubeni, a major Japanese integrated trading and investment business conglomerate,have recently signed an MoU with state-owned PetroVietnam Power and a local construction company for the roughly $1.93 billion project.

According to Nikkei Asian Review, the Japanese companies and their Vietnamese partners will begin a feasibility study and negotiations on power pricing, with the aim of bringing the plant online in 2026.

The LNG plant will be located in the coastal province of Quang Ninh, with capacity of around 1,500MW, or the equivalent of one nuclear reactor. Gas-fired power generation is expected to grow to 158.1 billion kWh in 2030, from 44 billion kWh in 2020.

This will mark the first overseas one-stop project for Tokyo Gas, which is eager to export its LNG know-how to markets beyond the stagnant Japan.

Last month, ExxonMobil Haiphong Energy Pte., Ltd., Haiphong People’s Committee, and Japanese power generation company JERA signed an MoU to cooperate on a potential integrated LNG-to-power project in the city.

Elsewhere, Delta Offshore Energy, Bechtel Corporation, General Electric, and McDermott International signed a master teaming agreement for the development of the Bac Lieu LNG-to-power project in the Mekong Delta province of Bac Lieu. The purpose of the partnership is to utilise $3 billion of equipment and engineering services from Bechtel, GE, and McDermott, utilising best-in-class US technology and engineering capabilities.