HANOI: Vietnam, Russia signed an agreement on the construction of the South-East Asian nation’s first nuclear power plant as Hanoi moves to bolster energy security amid Middle East disruptions that are disrupting global fuel supplies.
The agreement was signed during Vietnamese Prime Minister Pham Minh Chinh’s visit to Russia, according to a statement on the government’s website, which did not specify when construction will begin. During the trip, Russia’s largest LNG producer Novatek also signed a preliminary deal to supply Vietnam, news website Tass reported Monday (March 23).
Vietnam has moved to shore up energy security after the Iran war all but halted oil and gas exports through the Strait of Hormuz, leading to fuel price hikes and long queues at gas stations. The government has set out a plan for fuel-saving measures, including a shift to electric vehicles and accelerating the use of biofuels.
It’s also been seeking help from partners including Japan, South Korea, Angola and Algeria to diversify crude oil sources. Vietnam has two domestic refineries that provide around 70% of its domestic needs, however more than 80% of the crude oil it imports comes from Middle East.
Vietnam had been pushing Russia to accelerate the development of the Ninh Thuan 1 nuclear power plant, which it’s seeking to have online before the end of 2031 at the latest. The project is set to have two Russian-designed reactors with a combined capacity of about 2,400 MW.
The two countries also agreed to expand cooperation in the fields of new energy, clean and renewable energies, according to the statement.
Vietnam and Russia have extensive energy cooperation ties going back decades, including joint ventures between PetroVietnam and Russian state-owned firms including Zarubezhneft and Gazprom. Vietsovpetro, a JV formed between the Southeast Asian country and the Soviet Union in 1981 has drilled 36 wells in Vietnam in the past five years.
During Party Chief To Lam’s visit to Moscow last year, the two countries agreed to expand cooperation on geological exploration and oil and gas production on the Vietnamese continental shelf and in Russia. - Bloomberg
