On Wednesday, Chan May LNG said that the US-Vietnamese joint venture (JV) would invest about USD6 billion in a power project in Vietnam to benefit from the country’s increasing electricity demand.
CEO of Chan May LNG John Rockhold said that the project in Thua Thien Hue province will comprise of 4 GW power plant, along with a liquefied natural gas (LNG) terminal and storage facilities. It will use turbines provided by General Electric.
Chan May LNG is 60% owned by US investors and 40% by Vietnamese investors.
The power plant construction is targeted to start in 2021 while the first phase of 2.4 GW will start in 2024 and the whole plant will be operational from 2027. Following the full operation, the project will import roughly USD1.2 billion/year worth of US LNG.
The project is estimated to help to mitigate the trade deficit the US has incurred with Vietnam, as the US has LNG to sell.
The US government provides support for the project with several LNG suppliers ready and several institutions have shown interest in financing the project such as US Exim Bank, the US International Development Finance Corp., and the International Finance Corp.
According to Rockhold, the project is now being assessed by Vietnam’s Prime Minister. Chan May LNG expected the investment license would come this fall.
