Japan’s JERA has signed into a Memorandum of Understanding with Vietnam Electricity (EVN) concerning cooperation in the LNG value chain business.
Under the MOU, JERA and EVN will discuss opportunities for mutual collaboration in the LNG value chain business. Specific areas for discussion include joint procurement of LNG, joint development of LNG receiving terminal projects, cooperation in introducing LNG to EVN power plants and collaboration on LNG shipping optimisation.
LNG is expected to be introduced in Vietnam due to steady growth in electricity demand and depletion of domestic resources. Together with its subsidiaries, EVN owns approximately 60 per cent of the country's power generation capacity and supports the country's economic development by providing a stable supply of electricity. EVN also aims to procure LNG for use in power generation as demand for electricity increases.
JERA said in a statement that it believes that strengthening its relationship with the leading energy company in Vietnam, a country which is expected to see increased demand for LNG, will greatly contribute to expanding business opportunities for both EVN and JERA.
JERA stated it will continue to work together with LNG industry counterparts both within and outside Japan to strengthen its LNG value chain business and seek opportunity in an LNG market undergoing great change.