Sumitomo to co-operate with PV Gas in LNG

The two parties have plans to establish cooperation mechanisms in developing the under-discussed liquefied natural gas (LNG) gas-to-power project chain. Initially, the priority will be given to exploring how the two can utilise their capabilities and meet the needs of parties involved when settling on a cooperative relationship.

Fujioka Hiroyuki, general manager of Power Infrastructure Business Department No.3 of Sumitomo Corporation (Japan), provided an overview of their energy business, with a particular focus on the LNG sector, and discussed the collaboration opportunity with PV GAS.

He said that Sumitomo was confident and desired to invest and develop an LNG-to-power project chain in Khanh Hoa's Van Phong area, together with PV GAS, as well as promote the LNG business in Vietnam.

Established in 1919, Sumitomo Corporation has held its place in the Fortune Global 500 for the past 28 years. With a valuation of $26.6 billion, the group commands an impressive portfolio of 883 subsidiaries and affiliate companies, employing over 75,000 personnel worldwide. The corporation currently oversees nine industrial park (IPs) in six countries.

Sumitomo has been in Vietnam since 1997 with the establishment of Thang Long IP . The corporation has since invested in the development of Thang Long II in Hung Yen province and Thang Long Vinh Phuc in Vinh Phuc province. These parks cover a combined area exceeding 1,000 hectares, with a total investment of around $404 million.

Besides this, the corporation is the investor of the 1.32GW Van Phong 1 coal-fired power plant, which began commercial operations in mid-June.

The $2.58 billion project is being developed in Khanh Hoa on a build-operate-transfer (BOT) basis. The power generated by the plant will be transferred to the national grid across 500kV transmission lines from the on-site Van Phong switchyard, which is already available for use. The plant’s electricity output will be sold to state-owned utility Vietnam Electricity.