Japan’s power utility JERA is considering an investment in a natural gas-fired power plant in Vietnam, Reuters has reported.

The initiative is part of a broader trend in Asia, as countries transition from coal to cleaner fuels such as liquefied natural gas (LNG).

JERA Asia’s investment decisions in LNG or gas power projects are influenced by the region’s energy transition policies and the decline of domestic natural gas reserves.

Vietnam’s power sector is evolving rapidly, with projections that gas-fired power plants, utilising both domestic gas and imported LNG, will constitute 24.8% of the country’s total installed capacity by 2030.

This equates to a substantial 37.33GW, with LNG poised to contribute the majority.

Despite the growing emphasis on LNG, coal remains the predominant energy source in Southeast Asia, with its share in power generation still increasing.

“The government of Vietnam really wants to expand LNG infrastructure instead of coal … but it is not so easy.”

Kai highlighted Vietnam’s ambitious goals to establish multiple LNG projects within a challenging time frame.

In March 2024, JERA and engineering firm IHI launched a test facility at the Hekinan thermal power plant in Aichi Prefecture, Japan, to assess the feasibility of co-firing coal with ammonia.

The initiative was aimed at reducing carbon emissions from power generation. This trial is the world’s first of its kind.