Novatek eyes expanded LNG cooperation in Vietnam

Novatek eyes expanded LNG cooperation in Vietnam

As Vietnam races to secure its energy future and meet the demands of its surging economy, a new partnership with a Russian energy giant is taking shape, signalling a deepening of the nations' long-standing ties.

Russian liquefied natural gas (LNG) producer Novatek has declared its intent to significantly expand its footprint in Vietnam, with chairman Leonid Viktorovich Mikhelson outlining the company's ambition to deepen cooperation and investment during a meeting with Prime Minister Pham Minh Chinh in Russia on March 23.

"Vietnam is one of the world's fastest-growing economies with a strong focus on energy development," Mikhelson said. "Novatek hopes to expand cooperation and investment in Vietnam, based on the two countries' comprehensive strategic partnership and long-standing ties."

The meeting took place during PM Chinh's official visit to Russia, underscoring the importance both nations place on energy collaboration. While specific projects or investment figures were not disclosed, Novatek's interest signals potential for future LNG supply arrangements or upstream development ventures between the Russian producer and the Southeast Asian nation.

Novatek is principally engaged in the exploration, production, processing, and marketing of natural gas and liquid hydrocarbons. Novatek is Russia's second LNG producer and the seventh largest publicly traded company in the world by natural gas production volume. In the Forbes Global 2000 list in 2020, Novatek ranked 316th among the world's largest public companies.

Novatek has successfully implemented large-scale LNG ventures while developing proprietary LNG technologies. The group is keen on Vietnam’s LNG segment, eyeing the engagement in the Ca Na LNG venture in collaboration with partners such as Zarubezhneft as well as tapping into Vietnam’s fast-growing gas market.

PM Chinh said, "Novatek’s operations align with Vietnam’s strategic direction. Vietnam and Russia have ample potential for energy cooperation, which has been a highlight of the countries' bilateral relations for over 50 years."

He expressed appreciation for Russia’s investment and support in advancing Vietnam’s oil and gas sector, including facilitating the evolution of Petrovietnam into a multinational corporation. He also stressed that energy cooperation is a key pillar of the comprehensive strategic partnership, with Russia’s strengths complementing Vietnam’s needs.

“It is vital to foster cooperation and diversify sources of supply, markets, and supply chains amid a rapidly changing and complex global situation. Vietnam is also promoting the adoption of science, technology, and innovation to restructure and transform its energy sector,” PM Chinh said.

“Both sides have needs and ideas for cooperation. Vietnam supports Novatek to expand operations and investment in Vietnam, especially LNG port infrastructure projects, LNG-fired power plants, and supplying stable LNG for the Vietnamese market,” he added.

The PM called on Novatek to collaborate with local authorities, state-owned enterprises such as Petrovietnam and Vietnam Electricity, as well as private companies, to implement ventures, including the construction of large-scale LNG storage facilities in Vietnam.

VIR