PETALING JAYA: JAKS Resources Bhd has inked a memorandum of understanding (MoU) with Vietnam’s T&T Group Joint Stock Company to explore collaboration possibilities to develop the 1,500-megawatt Quang Ninh 2 liquefied natural gas-to-power project in Quang Ninh province, Vietnam.
The MoU, which was signed on Sept 11, 2021 at the Embassy of Vietnam in Helsinki, Finland, demonstrates the common vision of both parties to address Vietnam’s increasing domestic electricity demand, increasing gas demand for gas-fired generation plus the required importation of LNG into Vietnam.
Under the terms of the MoU, both JAKS and T&T Group will mutually agree on a common approach in relation to the implementation of the LNG-to-power project, which includes the location, design, technology and infrastructure involved for the import terminal and the power plant, and the selection of LNG and gas-fired power solutions suppliers.
Separately, T&T Group will be responsible for all legal matters pertaining to the LNG-to-power project. JAKS will be the strategic investor and is responsible for the engineering, construction and commission process by facilitating the project’s design, engineering, construction and operations.
Commenting on the MoU, JAKS CEO Andy Ang Lam Poah said this is yet another breakthrough for JAKS to tap into the LNG field, which will essentially strengthen the group’s power and energy business division in Vietnam.
“Our first ever entry into the power-energy sector was through the construction of the 1,200-megawatt Hai Duong Power Plant, which has fully commenced its commercial operations in January this year. We are confident of developing the LNG-to-power project with our capability, expertise and experience gained thus far, together with the support from T&T Group. This synergistic collaboration with T&T allows us to leverage on each other’s strengths to create value and growth in Vietnam.”
Ang added that there is vast potential to expand Jaks’ footprint in Vietnam, especially in the area of power and energy generation, given that Vietnam’s economy is expected to grow 6.6% in 2021 and electricity demand is projected to continue to rise. Importantly, under the draft Power Development Plan VIII (2021-2030), the Vietnamese government strongly supports the concept of using the LNG-to-power projects to provide sustainable and environmentally friendly energy generation due to environmental concern, as well as the anticipated power shortage from 2021-2035.
T&T Group is a Vietnamese joint stock company incorporated in 1993 with diversified business operations in real estate, financial investment, manufacturing industry (motor, car, plastic and mineral), sports and import-export activities. It is also an investor and project developer in the energy sector in Vietnam. T&T Group has invested and developed renewable power plants, solar power plants, LNG power plants, waste-to-energy power plants and waste treatment plants.
