Russia’s second largest gas corporation wants to expand cooperation in Vietnam

Within the framework of his official visit to the Russian Federation, Prime Minister Pham Minh Chinh visited and worked with Novatek – Russia’s and the world’s leading corporation in the field of natural gas (LNG), on March 23.

At the meeting, Mr. Leonid Viktorovich Mikhelson, Chairman of Novatek Group, assessed Vietnam as one of the fastest growing countries in the world, focusing on developing the energy sector.

According to Mr. Leonid Viktorovich Mikhelson, Novatek wants to continue expanding cooperation and investment in Vietnam, on the basis of the comprehensive strategic partnership and traditional cooperation between the two countries.

Novatek was established in August 1994, operating mainly in the field of exploration, production, processing and trading of natural gas and liquid hydrocarbons. They are the Russian Federation’s second largest natural gas producer (after Gazprom) and the seventh largest publicly traded company globally by natural gas production. In the 2020 Forbes Global 2000, Novatek was ranked as the 316th largest public company in the world.

Novatek has successfully deployed large-scale LNG projects and developed exclusive natural gas liquefaction technology. This group is currently very interested in the LNG sector in Vietnam, including participating in the Ca Na project with partners such as Zarubezhneft, accessing Vietnam’s growing gas market.

Prime Minister Pham Minh Chinh assessed that the group’s activities are consistent with Vietnam’s major orientation and strategy. He said that between Vietnam and the Russian Federation there is great potential for cooperation in the field of energy – a bright spot in bilateral relations over the past 50 years.

The Prime Minister thanked the Russian side for investing, helping and creating conditions for Vietnam’s oil and gas industry and the Vietnam National Energy-Industry Group (PVN) to develop and become a multinational corporation. On the other hand, he affirmed that energy cooperation is an industry that Russia has strengths in, that Vietnam has needs and is an important content in the comprehensive strategic partnership between the two countries.

Government leaders recognize that promoting cooperation and diversifying sources, markets, and supply chains is very important in the context of a rapidly changing and complex world situation. At the same time, Vietnam is also promoting the application of science and technology and innovation to restructure and transform the energy sector.

He affirmed that the two sides have needs and ideas for cooperation, and at the same time supported Novatek to expand operations and investment in Vietnam on the basis of compliance with legal regulations, effective cooperation and healthy competition with other partners and investors.

Vietnam is considering amending legal regulations related to the electricity sector. The Prime Minister said that Vietnam welcomes the group to participate in developing projects to build LNG terminal infrastructure and LNG gas power plants, such as in Hai Phong – Quang Ninh, Nam Du (An Giang), Nghi Son (Thanh Hoa), Ca Na (Khanh Hoa), providing stable LNG supply to the Vietnamese market.

The Prime Minister asked Novatek to coordinate with localities, agencies and state-owned enterprises in Vietnam’s energy and oil and gas sectors such as PVN, Vietnam Electricity Group (EVN) and private enterprises to participate and implement projects, including building Novatek’s large warehouse in Vietnam. Along with that, the Prime Minister said the executive encourages Vietnamese businesses to increase cooperation with Novatek on natural gas liquefaction technology.