By 2030, power plants in Vietnam using both domestic gas and imported liquefied natural gas (LNG) are projected to reach a total output of 37.33 gigawatts (GW), accounting for 24.8 percent of the country’s total installed capacity. LNG is expected to play a dominant role in this increase.
Izumi Kai, CEO of JERA Asia, shared with Reuters that the company is working to form partnerships with local entities and is in discussions with the Vietnamese government about potential projects. JERA is also open to investing in existing ventures. Kai noted that Vietnam is rapidly launching multiple LNG projects and that JERA is concentrating on optimal designs to mitigate potential delays.
JERA Asia’s investments in LNG and gas power in Asia are driven by the shift towards energy transition policies and the declining reserves of domestic natural gas. Kai emphasized that the trend towards LNG for power generation will persist.
During a July 2023 meeting with Deputy Prime Minister Tran Hong Ha, Steven Winn, JERA’s global strategy chief, affirmed the company’s commitment to achieving net-zero emissions in Vietnam. He also highlighted JERA’s support for Japan’s Asia Zero Emission Community initiative, including plans to convert Vietnam’s coal power plants to LNG. This conversion may involve integrating novel fuels such as green hydrogen, green ammonia, biomass, combined carbon recovery, and landfill solutions.
Research by Wood Mackenzie indicates that Vietnam’s economic growth will depend on investment in gas infrastructure and essential policy reforms. Gas demand is projected to grow at an average annual rate of 12 percent, potentially tripling by the mid-2030s. Gas consumption is expected to rise from eight million tonnes of oil equivalent (mtoe) in 2020 to 20 mtoe by 2035, while coal’s share will decrease by seven mtoe by 2050.