Japan’s LNG importing giant JERA has entered 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 joint procurement of LNG, development of LNG receiving terminal projects, cooperation in introducing LNG to EVN power plants, and collaboration on LNG shipping optimization.
According to JERA, 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 around 60 percent 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 that this relationship would greatly contribute to expanding business opportunities for both EVN and JERA since Vietnam is a country expected to see increased demand for LNG.