Tokyo Gas forms a JV for an FSRU and 1.5 GW LNG-to-power project in Vietnam

The Vietnamese company Truong Thanh has formed a joint venture with Japan’s Tokyo Gas and Kyuden International (a subsidiary of Kyushu Electric Power) to develop an LNG and LNG-to-power project in Vietnam. The three companies thus established Thai Binh LNG Power, which will explore the feasibility of building a floating storage and regasification unit (FSRU) and a 1.5 GW gas-fired power plant in the Thai Binh province of northern Vietnam.

The gas-fired power plant is scheduled for commissioning in 2029 at the earliest, and the capacity of the planned FSRU has not yet been decided. The scope of the project ranges from development, construction, and operation of the power plant and LNG receiving terminal, to LNG procurement and the selling electricity to Electricité du Vietnam (EVN). The joint venture will first assess the economic and technical feasibility of the project, select an EPC contractor and develop an LNG procurement strategy during this phase.

In November 2023, Vietnam began operations on its first LNG import terminal: the 1 Mt/year Thi Vai terminal, operated by PetroVietnam. Vietnam plans to build 15 LNG-fired power plants by 2035 with a combined capacity of more than 22 GW, accounting for nearly 15% of the country’s total power generation mix.