Jera, Vietnam Jointly Enter LNG Value Chain

Japanese LNG trader Jera and Vietnam Electricity have agreed to co-operate in the LNG value chain business, Jera said October 18.

The two will discuss the joint procurement of LNG, the joint development of LNG receiving terminal projects, co-operation in introducing LNG to EVN power plants and collaboration on LNG shipping optimisation, Jera said.

LNG is expected to be introduced in Vietnam as electricity demand grows steadily and its resources run out. Together with its subsidiaries, EVN owns about 60% of the country's power generation capacity.

Jera, which is the world's biggest LNG buyer, said that "strengthening its relationship with the leading energy company in Vietnam, a country which is expected to see increased demand for LNG, will greatly contribute to expanding business opportunities for both EVN and Jera."

Jera's chairman Hendrik Gordenker told the Oil & Money Conference in London October 9 that while gas does not have as high a penetration in south Asia as it did in north Asia, demand is growing there, and there was an opportunity for gas to play a commercial role, especially replacing dielsel in power generation.