Japanese firm strikes deal to join Vietnam’s LNG market

Illustrative photo (Source: VNA)

HCM City – The Japan Petroleum Exploration Co. Ltd. (JAPEX) and Vietnam's ITECO JSC have freshly signed a share purchase agreement and a pact on comprehensive cooperation that involves the procurement, storage, and supply of liquefied natural gas (LNG) in Vietnam.

Accordingly, the sides' collaboration agreements revolves around project design and construction; operation and maintenance; procurement of LNG; finance; sales and marketing; training and developing local human resources in the field of LNG, among others.

Currently, the supply of natural gas in the northern region of Vietnam is on a downward trend and is forecast to face a shortage in the future. The joint work between JAPEX and ITECO is expected to help increase the supply sources.

In addition, the companies will team up to import, store, distribute and supply LNG by both pipelines and tank trucks. Their business project will start operating in the fourth quarter of 2024.

JAPEX Senior Vice President Matthew Tan said JAPEX wishes to promote the diversification of clean energy supply solutions, especially LNG, in the Vietnamese market.

In the long run, JAPEX and ITECO will aim to introduce a variety of clean fuel solutions and seek opportunities in new projects, he added.

According to data from the Foreign Investment Agency under the Ministry of Planning and Investment, as of December 20, 2021, Japan had ranked third among foreign investors in Vietnam with a total registered capital of nearly 3.9 billion USD, up 64.6 percent over the same period in 2020.