Japan, Vietnam Sign Energy Accord
Japan and Vietnam have signed a memorandum of cooperation (MoC) which will pave way for the two countries to work closer in the field of energy.
The agreement was signed November 9 by Hiroshige Seko, minister of economy, trade and industry, Japan and Tran Tuan Anh, minister of industry and trade, Vietnam, in Da Nang in Viet Nam, Japan’s ministry of economy, trade and industry (Meti) said the same day.
The two parties will cooperate in the fields of LNG, coal, grid development, renewable energy, and energy efficiency. Under the MoC, a Japan-Vietnam Energy Working Group will be established.
The southeast Asian region has been an area of focus for Japanese energy companies because of the market's potential for energy demand. Wood Mackenzie expects Asean's LNG demand to triple to 35mn mt/yr in 2025, and grow further to 72mn mt/yr in 2035. In Vietnam, demand for power is rapidly rising which is expected to give a demand boost to both natural gas and coal.
US energy firms too are eyeing the growing Vietnamese market. Two US firms, AES Corporation and Alaska Gasline Development Corporation, signed separate MoUs with PetroVietnam Gas (PV Gas), a unit of state owned PetroVietnam, November 12.