The port city of Hye Phong in Vietnam has approved a liquefied natural gas (LNG) project for power generation, which is expected to be developed by the US supermeasure ExxonMobil and cost US $ 5.09 billion.
The People’s Committee of the city of Hye Phong approved the project expected to start power generation in 2026 or 2027, Reuters reported on Friday, citing a statement from the Vietnamese city.
The power plant is expected to have an initial capacity of 2.25 GW (GW) when commissioned. The city of Haig Phong will double the capacity to 4.5 GW by 2029-2030.
In June this year, Vietnam’s Prime Minister Nguyen Xuan Phuc told ExxonMobil LNG Market Development Chairman Irtiza Sayyed that Vietnam welcomes American supermembers’ plans to invest in the Southeast Asian country.
Exxon is exploring the possibility of investing in new projects to develop an LNG-to-power plant in Vietnam, the local government said at the time. Plans included a 4-GW LNG-to-power plant in Hai Phong, which could start generating power between 2025 and 2030, and a 3-GW gas-fire power complex in Long An, Mekong Delta province.
Although Exxon-led LNG-to-power projects in Vietnam may only become a reality in the latter part of this decade, its operations in Guyana are increasingly focused on its US oil giants.
Earlier this week, Exxon made a final investment decision on the Pyara offshore oil field in Guyana. When commercial production begins in 2024, Pera expects to produce 220,000 bpd of crude oil.
This will be Supermeasure’s third offshore development project in Guyana, which rose to fame due to a string of discoveries in the Stabrokek block carried out by Exxon and its partner Hess Corp, so far estimated to have recoverable resources discovered in the block. Oil equivalents over 8 billion barrels.
By Charles Kennedy for Oilprice.com
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