Japan Petroleum Exploration (Japex) has announced its decision to exit from a proposed liquefied natural gas (LNG) terminal project in the northern part of Vietnam.
This decision follows feasibility studies that began in January 2022, which aimed to assess the viability of constructing an LNG terminal in the Nam Dinh Vu Industrial Park, Hai Phong City.
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The development included plans for a 50,000m³ LNG storage tank and berthing facilities with a capacity of 650,000 tonnes per annum (tpa).
Japex, through its affiliate ITECO Joint Stock Company (ITECO JSC) based in Ho Chi Minh City, had been exploring various aspects of the project, including base foundation design and potential customer and supplier networks, since acquiring shares in October 2022.
The company has encountered economic challenges that it deems difficult to overcome and has therefore decided to transfer its shares in ITECO JSC to the business partners of the company.
The plan was initially part of a broader initiative, approved by the Vietnamese Government, to include the Northern Vietnam LNG Terminal in the Gas Industry Development Master Plan in February 2020.
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By GlobalDataThe project was scheduled for commercial operation by 2025, with additional expansion developments envisaged for the latter half of the decade.
Japex also stated that it will carry out a feasibility study in Vietnam on LNG-based energy services for industrial parks in Hai Phong City and other locations. This follows the company’s selection for NEDO’s FY2025 International Demonstration Project on Japan’s Technologies for Decarbonisation and Energy Transition.
As part of its strategic direction, Japex is focusing on enhancing its infrastructure and utility business to establish a robust medium-to-long-term revenue structure less affected by external market factors like oil price volatility.
This strategy includes concentrating on building core assets around overseas exploration and production operations.
In another development, Japex recently completed its previously announced acquisition of Verdad Resources Intermediate Holdings, which holds tight oil and gas assets in the US, for approximately $1.3bn (¥204bn).
