Seeing investment opportunities in the gas power sector, US businesses will pour billions of dollars into the ASEAN region, of which, the Mekong Delta region of Vietnam is in sight.
Time to invest in LNG
According to the plan, the LNG Chan May Gas Power Plant Project in Chan May – Lang Co Economic Zone (Thua Thien Hue) has a total design capacity of 4,000 MW, will start construction in the first quarter of 2021 and operate commercially. Phase I investment project in 2024. This is an investment project in the form of IPP (independent power project) with an estimated total investment of 6 billion USD, is expected to create many breakthroughs for the energy sector in the country.
Present at the Vietnam – US Business Summit which took place over the weekend in Hanoi, Mr. John Rockhold, General Director of Chan May LNG Joint Stock Company – the investor of the project said that he was very pleased. because Power Planning VIII has correctly assessed the role of renewable energy projects. More importantly, the LNG Chan May Gas Power Project has been given a generous land fund by the locality.
“It seems that natural gas power is still new to Vietnam, but we will focus heavily on LNG investments, even though guarantees for renewable energy or LNG projects to be advantageous in transmission. It is necessary to discuss more and get an agreement from the state- owned enterprise holding the transmission stage in Vietnam, Vietnam Electricity (EVN) “, said Mr. John Rockhold.
LNG Chan May Gas Power is not the only US-funded project pouring into the gas power sector in Vietnam. Previously, the Ministry of Industry and Trade and AES Group signed a Memorandum of Understanding on the implementation of Son My 2 Gas Power Plant, using LNG gas with the scale of 2,200 MW.
And just a few months ago, Mr. Irtiza Sayyed, Global President of Exxon Mobil said that this group wanted to take advantage of opportunities to invest in the energy sector in Vietnam. Specifically, Exxon Mobil’s desire is to invest in port chains, LNG gas depots and LNG power plants with the most modern technology in Hai Phong. The scale of the power generation project from LNG is up to more than 4,000 MW, expected to come into operation in the period 2025-2030.
As for the gas-fired power chain with a capacity of about 3,000 MW in Long An, Exxon Mobil will ensure a complete continuous supply of LNG directly from the United States and from some other countries. The import of LNG will contribute to building a harmonious and mutually beneficial trade balance between the two countries.
US businesses saw an opportunity
Attending the Vietnam – US Business Summit from the US bridgehead by online form, said Adam Boekhold, Executive Director of the US Financial Development Agency , said that US businesses see many investment and business opportunities in the gas power sector. “In the next few years, capital from the United States to invest in energy in ASEAN will increase strongly with billions of dollars and the Mekong Delta region of Vietnam is in sight,” said Mr. Adam Boekhold.
According to John Rockhold, the demand for energy investment in Vietnam is up to tens of billions USD per year. Meanwhile, many US businesses have strong financial potential. The problem is to quickly put the signed agreements into effect by removing the problems that are still in trouble.