Power plants using domestic gas and imported liquefied natural gas (LNG) are set to become a crucial source of power in Vietnam by 2030, jumping to 37.33 GW, or 24.8% of its total installed capacity, with LNG accounting for the lion's share.
"We are now trying to collaborate with a local partner and also try to discuss with the Vietnam government," said Izumi Kai, JERA Asia's chief executive, adding that it was also open to investing in existing projects.
Southeast Asian countries have laid out plans in recent years to expand LNG infrastructure to address growing demand, but coal still remains the main source of power and its share in power generation has been growing.
Kai said Vietnam was trying to start operating multiple LNG projects in a very challenging time frame, adding that JERA was focusing on the best designs to work around potential delays.
"The government of Vietnam really wants to expand LNG infrastructure instead of coal ... But it is not so easy".
JERA Asia's investments in LNG or gas power projects in Asia hinge on energy transition policies and dwindling domestic natural gas reserves, said Kai, adding: "The shift towards LNG for power, this trend will continue".
JERA Asia, which has investments and assets in Bangladesh, is also closely monitoring political developments in the South Asian nation, where a new interim government has assumed power after its former Prime Minister fled following jobs protests.
Kai expects commercial operation of JERA's delayed Meghnaghat power plant to take a "few more months", as the country of over 170 million people faces a natural gas shortage.
This comes amid weather damage at one of Bangladesh's floating storage regasification unit (FSRU), which acts as an LNG import terminal, owned by its local partner Summit Power.
Also facing uncertainty is JERA's $1 billion Matarbari onshore LNG project, which it planned to develop with Summit.
"The government has been reconsidering the exact location of the Matarbari onshore terminal, partially because of the FSRU that got damaged," Kai said.
