Three companies from Japan and Vietnam have joined forces to establish a new LNG-to-power project offshore Vietnam. Japanese fuel majors Tokyo Gas and Kyuden have established a joint venture (JV) with Vietnam’s Truong Tan Vietnam Group to develop the project in the Thái Bình province in the north of Vietnam. 

The Thai Binh LNG Power (TBLP) JV will build and run a floating terminal for LNG imports off the coast of Thái Bình province, as well as a natural gas-fired power plant, with the aim of both procuring LNG and selling electricity to Vietnam Electricity Corporation. The planned natural gas-fired plant will have a capacity of 1.5 million kilowatts and commercial operations are due to start by 2029. 

This is Tokyo Gas’s second LNG-to-power project in Vietnam, having previously developed a similar onshore project with PetroVietnam in Quang Ninh province, due to come online by late 2027. The Japanese major plans to take full advantage of this prior experience, remarking in a statement on the new joint venture: “We will continue to leverage the experience and know-how we have accumulated to date to contribute to the development and low-carbonisation and decarbonisation of Asian countries through the expansion of LNG infrastructure business, including this project, and to support Tokyo Gas Group’s management vision ‘Compass 2030’".  

In recent years, Vietnam has become an increasingly important oil and gas producer. Holding Asia’s third-largest reserves of oil, the nation has been working to increase its offshore exploration activities to boost trade and innovation. 

The Su Tu (Lion) oilfield in Vietnam’s portion of the South China Sea was Asia’s fifth-largest producing oil field in 2022. Owned by Geopetrol, Korea National Oil, Perenco Holdings, SK Innovation Co and Vietnam National Oil and Gas Group, and operated by Cuu Long Joint Operating Co, the field produced 0.06 million barrels per day in 2022.