Japan JXTG Nippon Oil & Energy (JXTG) said Monday [July 1] that it will tie up with Vietnam National Petroleum Group (Petrolimex) to build liquefied natural gas (LNG) receiving stations and joint procurement.
Petrolimex and JCCP sign deal in Tokyo on July 1. Photo: VNA
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The partnership marks a new Vietnamese foray for JXTG – Japan’s largest direct seller of crude oil – which had planned to conduct an oil refinery project in Vietnam. In 2016, JXTG’s unit named JXTG Holdings took an 8% stake in Petrolimex for JPY20 billion (US$185 million at current rates).
Meanwhile, Vietnam News Agency reported that the deal aims to serve Petrolimex’s upcoming LNG import port in Vietnam’s central province of Khanh Hoa where Petrolimex will provide LNG to gas-fueled power plants in the locality run by Vietnam Electricity (EVN).
On this occasion, Petrolimex also inked an MoU with Japan Cooperation Centre Petroleum (JCCP) in which JCCP will focus on supporting the former in human resources, technical in downstream oil and gas industry.
The deals have caught public attention as Vietnam is shifting to other power sources to feed its growing economy.
Vietnam is struggling to reduce coal-fired power amid global environmental concerns and increasing the ratio of gas-fueled power which emits less carbon dioxide.
The situation has prompted a rise in demand for LNG as the country’s storage remains insufficient.
During the participation of Vietnamese Prime Minister Nguyen Xuan Phuc at G20 Summit in Japan, he and US President Donald Trump discussed and expected the soon signing of the memorandum of understanding on long-term cooperation between Vietnam’s Ministry of Industry and Trade and the US Department of Energy for large scale import of LNG.
