To that end, ExxonMobil will need to ensure a continuous stream of LNG supply – either from its Golden Pass LNG venture in the U.S. or sourced through natural gas exploration offshore Vietnam, or from neighbouring countries.
The government in Hanoi is also keen for ExxonMobil to go ahead with a proposed 4,000 MW integrated LNG-to-Power plant in the northern part of Vietnam. The 4,000 MW venture is meant to be built in the northern port city of Haiphong, adding and could e completed between 2025 and 2030.
ExxonMobil has been seeking to progress oil and gas production activities offshore Vietnam for several years, though with little success. Pre-FEED was competed on the Ca Voi Xanh field in 2018, but activities stalled ever since even though the field is though large enough to provide electricity for a city the size of Hanoi for more than 20 years.
Hanoi seeks to double power gen capacity by 2030
Vietnam’s vibrant economy is facing severe energy shortages from 2021 as construction of new power plants cannot keep up with rising electricity demand. The government in Hanoi hence set out guidelines to boost generating capacity from currently 54 GW to 125 GW by 2030.
The construction spree is meant to raise the share of renewable energy sources to nearly 20 percent by 2030, while reducing reliance on emission-intensive thermal fuels. Coal, in particular, currently accounts for 38 percent of Vietnam’s installed power generation capacity.
Natural gas is meant to become one of the backbones of Vietnam’s future electricity mix, with the government supporting initiatives to develop LNG regas to import up to 8 million cubic metres of gas per annum.
Bac Lieu LNG-to-Power project already underway
In Vietnam’s southern province of Bac Lieu, Delta Offshore Energy is busy developing a $4 billion LNG-to-Power project, with up to 2 million tonnes per annum (mtpa) of LNG supply lined up under a contract with Australia-listed LNG Ltd, the former developer of the U.S. Magnolia LNG venture.
In May, however, the Magnolia LNG venture was sold to a privately-held energy infrastructure firm as cash-strapped LNG Ltd saw itself incapable of realizing the 8.8 million tons per year export project.
Administrators from PricewaterhouseCoopers arranged a sale to Global Energy Megatrend Ltd, with offices in London and Lafayette, Louisiana.