NOVATEK and PetroVietnam Power Sign Cooperation Agreement on LNG and Power
During the official visit of the President of the Socialist Republic of Vietnam Nguyen Xuan Phuc, PAO NOVATEK (“NOVATEK” and/or the “Company”) and PetroVietnam Power signed the Cooperation Agreement on LNG and power projects in Vietnam (the “Agreement”). President Nguyen Xuan Phuc and NOVATEK’s Chairman of the Management Board Leonid Mikhelson held a meeting to discuss the supply of LNG from the Company’s projects to the Vietnamese market.
Parties to the Agreement intend to cooperate on LNG infrastructure projects with the view to meeting the growing demand for electricity in Vietnam. The Agreement represents an important step in the development of the Company’s cooperation with Vietnamese corporations, which received an additional impetus after NOVATEK opened its representative office in Vietnam.
“Russia and Vietnam share a long-standing friendship, and we will continue developing cooperation between our countries,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “Vietnam's electricity consumption has been growing at an average annual rate of 10% over the past 10 years, and NOVATEK is ready to meet this growing market’s needs. We intend to become a reliable partner for Vietnam in realizing its announced goals of phasing out coal-fired power generation, and facilitate the country's transition to clean energy of natural gas. This is in line with our strategy to expand our presence in the Asia-Pacific gas markets”.
PAO NOVATEK is the largest independent natural gas producer in Russia, and in 2017, entered the global LNG market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol “NVTK”.
https://www.novatek.ru/en/press/releases/index.php?id_4=4771
NOVATEK Established Representative Office in Vietnam
Hanoi, 10 August 2021. PAO NOVATEK (“NOVATEK” and/or the “Company”) announced today it has established a representative office in Hanoi, the Socialist Republic of Vietnam (the “Representative Office”).
The Representative Office will facilitate NOVATEK's expansion into the global gas markets and provide continuous support for the Company's prospective energy projects in Vietnam. The main tasks of the Representative Office will be to interact with partners, state-owned and private companies of the Socialist Republic of Vietnam to define and develop new projects to supply LNG from NOVATEK’s portfolio to the Vietnamese market.
“Vietnam offers NOVATEK the prospects of developing gas-related energy projects in the dynamically growing Asian Pacific region” noted Leonid V. Mikhelson, Chairman of the Management Board, “and, is of strategic importance for us in implementing our long-term aim of delivering affordable and secure natural gas for many decades in a sustainable manner.”
https://www.novatek.ru/en/press/releases/index.php?id_4=4592
NOVATEK signed MOU with Total, Siemens and Zarubezhneft on cooperation in Vietnam
Saint-Petersburg, 7 June 2019. As part of today’s Saint-Petersburg International Economic Forum, PAO NOVATEK (“NOVATEK” and/or the “Company”), Total Gas & Power Business Services S.A.S, Siemens Aktiengesellschaft and JSC Zarubezhneft (Zarubezhneft) signed a Memorandum of Understanding (MOU) on cooperation in Vietnam.
The MOU envisages developing of an integrated energy-generating project with the use of liquefied natural gas (LNG) within the Socialist Republic of Vietnam.
“The Vietnamese market is of great interest to us as the country’s economy and demand for electricity is forecasted to grow at a fast pace creating favorable conditions for gas-fired power generation and LNG supplies,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “Many years of experience of Zarubezhneft in Vietnam will contribute to the successful implementation of our strategic plans in this prospective market”
https://www.novatek.ru/en/press/releases/index.php?id_4=3246
NOVATEK Signed MoU with Ninh Thuan Province in Vietnam
Moscow, 22 May 2019. PAO NOVATEK (“NOVATEK” and/or the “Company”) announced today that the Company and the Ninh Thuan Provincial People’s Committee signed a Memorandum of Understanding (“MOU”) to develop an integrated energy-generating project with the use of liquefied natural gas (LNG) within the Socialist Republic of Vietnam. The MOU was signed in the presence of Russian Prime Minister, Dmitry Medvedev, and Prime Minister of the Government of Socialist Republic of Vietnam, Nguyen Xuan Phuc.
The energy-generating project provides for the delivery of LNG utilizing existing infrastructure as well as developing new infrastructure, including the construction of an LNG regasification terminal and new gas-fired power plants within Vietnam. Partners of the proposed project include Siemens Aktiengesellschaft, Total Gas & Power Business Services S.A.S and Vietnam A&A Technology Investment Co. Ltd.
“The strong economic growth within Vietnam generates additional demand for energy, which can be sustainably met with the development of an integrated gas generation project. The building of gas-fired power generation increases the demand for us to provide competitively priced LNG supplies to the country. This project could be realized in a relatively short period of time with the support of the Ninh Thuan province,” noted NOVATEK’s Chairman of Management Board Leonid Mikhelson
https://www.novatek.ru/en/press/releases/index.php?id_4=3207
In February 2021, the government of Vietnam released a draft of the country’s latest national power development plan, Power Development Plan 8 (PDP 8), for 2021 to 2030. The draft PDP 8 expands wind and solar capacity and increases their shares of the country’s generation mix. The draft PDP 8 also prioritizes enhancing grid infrastructure to ensure stable operation with a higher share of renewables.
Vietnam increasingly relies on coal imports because coal-fired power plants have been used to meet rapidly increasing electricity demand; more than half of Vietnam’s electricity generation came from coal in 2020. The country also relies significantly on hydroelectric generation and is home to a number of large rivers, including the Mekong. However, hydro’s reliability is affected by periodic droughts and water shortages. Non-hydro renewable sources such as wind and solar made up 5% of Vietnam’s electricity generation in 2020.
Expanding non-hydro renewable capacity will likely help Vietnam rely less on coal, reduce carbon emissions, and increase electricity generating capacity to meet the country’s growing electricity needs. With its strong emphasis on renewables, the draft PDP 8 departs significantly from previous plans, which relied heavily on hydropower, coal, and natural gas sources.
As of 2020, solar and wind capacity in Vietnam was 16.6 gigawatts (GW) and 0.6 GW, respectively. Under the draft PDP 8, Vietnam plans to increase solar capacity to 18.6 GW and wind capacity to 18.0 GW by 2030.
Vietnam’s underdeveloped grid hampers these capacity additions. The country needs new transmission and distribution infrastructure to accommodate capacity additions and to transmit electricity to where it’s needed. The government recently adopted new legislation that improves and prioritizes grid development.
Grid development is also a priority in the draft PDP 8. Grid priorities include building more high-voltage transmission lines and expanding grid infrastructure, which would help ease grid congestion and integrate renewables.
Some of the country’s transmission lines are operating at full load or are overloaded, especially in the region where solar capacity is concentrated. Electricity producers have reduced generation from renewables because of grid limitations. Despite solar capacity in Vietnam increasing significantly in 2020, the country plans to reduce its renewable energy output by 1.3 billion kilowatthours in 2021 because it does not have the transmission capacity needed. Although grid congestion has some short-term solutions, such as battery storage, the long-term solution is to expand Vietnam’s transmission grid.
One major grid development underway is a 461-mile transmission line extension with three 500-kilovolt transmission lines. These transmission lines will connect nine cities and provinces across central and southern Vietnam.
You can find more information about Vietnam’s energy sector in our Vietnam Country Analysis Brief.
Principal contributors: Slade Johnson, Kien Chau, Lindsay Aramayo
https://www.eia.gov/todayinenergy/detail.php?id=48176
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