Novatek, Vietnamese Province Sign LNG MoU

Russian independent producer Novatek has signed a memorandum of understanding with a Vietnamese province to supply LNG and develop a power project, it said May 23.

Present were Russian prime minister, Dmitry Medvedev, and his Vietnamese counterpart, Nguyen Xuan Phuc.

The project provides for the delivery of LNG using existing infrastructure and an LNG import terminal and power plants within Vietnam. Partners include German engineers Siemens, French Total – also an offtaker in, and partner of, Novatek's LNG projects – and Vietnam A&A Technology Investment Co.

“The strong economic growth within Vietnam generates additional demand for energy, which can be sustainably met with the development of an integrated gas generation project. The building of gas-fired power generation increases the demand for us to provide competitively priced LNG supplies to the country. This project could be realized in a relatively short period of time with the support of the Ninh Thuan province,” said Novatek CEO Leonid Mikhelson.