SINGAPORE, Sept 11 (Askume) – Japan’s largest utility and top power producer Jera plans to invest in a natural gas power plant in Vietnam, it said on Wednesday as it seeks to expand its presence in Asia.
In 2030, power plants using domestic natural gas and imported liquefied natural gas (LNG) will become an important source of energy in Vietnam, reaching 37.33 GW, accounting for 24.8% of total installed capacity, with LNG having the largest share.
Izumi Kai, CEO of JERA Asia, said: “We are now trying to cooperate with local partners and trying to discuss with the Vietnamese government.” He added that they are also willing to invest in existing projects.
Southeast Asian countries have planned to expand LNG infrastructure in recent years to meet growing demand, but coal remains the main source of power and its share in electricity generation is increasing.
Cai said Vietnam is trying to start operating several LNG projects within a very challenging timeframe. JERA is focusing on the best design to deal with potential delays, he said.
“The Vietnamese government wants to expand LNG infrastructure instead of coal… but it is not easy.”
JERA Asia’s investment in LNG or natural gas-fired power projects in Asia depends on energy transition policies and declining domestic natural gas reserves, Cai said, adding, “The shift toward LNG power generation, this trend will continue”.
Zera Asia, which has investments and assets in Bangladesh, is also closely monitoring political developments in the South Asian country, where a new interim government came to power after the former prime minister fled amid employment protests .
Cai expects JERA’s delayed Meghnaghat power plant to take “several months” to become commercially operational as the country of over 170 million people grapples with a gas shortage.
The incident was caused by weather-related damage to the Bangladesh Floating Storage Regasification Unit (FSRU), an LNG import terminal owned by local partner Summit Power.
The $1 billion Matarbari onshore LNG project to be developed by Jera alongside Summit is also facing uncertainty.
“The government is reconsidering the exact location of the Matabari land terminal, partly because the FSRU has been damaged,” Kay said.
