South Korea's SK to build Vietnam LNG plant

Spanish Market: Natural gas
19/02/26

South Korean energy conglomerate SK Innovation will operate a $2.3 billion LNG power generation project in Vietnam slated for completion in 2030, the firm said today.

The Quynh Lap LNG project, located in Nghe An province, 220km south of Hanoi, will consist of a 1,500MW gas combined cycle power plant (CCGT) and a 250,000m³ LNG terminal. Construction of the plant will begin in 2027. It will be run by a consortium made up of the South Korean firm, along with Vietnam's state-owned utility PV Power and Vietnamese sugar manufacturer NASU.

The plant is one of 15 planned LNG plants in Vietnam's eighth power development plan, which was revised in April 2025.

Vietnam has two other LNG import terminals — the 1mn t/yr Thi Vai and 3mn t/yr Cai Mep. Capacity at Thi Vai is expected to increase when a 2mn t/yr expansion comes on line in 2029.

The country has traditionally been dependent on coal and hydropower to generate electricity. But recent rapid population growth and industrialisation have resulted in frequent power shortages.

This has made it essential for Vietnam to first seek more reliable forms of power generation in the short-term by developing LNG-powered plants, SK Innovation suggested. The goal is for the country to eventually convert to carbon-free power in the longer term, the firm added.

SK Innovation also hopes to eventually supply LNG terminals in Vietnam with its own globally sourced LNG portfolio, helping to keep LNG supply stable and cushioning the country from unpredictable international LNG price movements. The firm's LNG portfolio currently stands at 6mn t/yr, and is targeted to grow to 10mn t/yr by 2030.

At the same time, SK will provide additional support by setting up high value-added industrial firms such as artificial intelligence (AI) data centres and logistics hubs near the completed power plant.

This will mark the first time that SK Innovation is attempting to recreate in another country an LNG value chain model that has previously proven to be successful in South Korea, the firm said. The firm will apply the same strategy to other regions in Vietnam, if this is successful, it added.

By Rou Urn Lee

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19/02/26

IEA ministerial meeting split over energy transition

London, 19 February (Argus) — Energy watchdog the IEA's biennial ministerial meeting in Paris this week was split over the energy transition, with a closing statement reflecting a sharp divide between the US and Europe. The IEA issued a chair's summary of the two-day meeting of energy ministers, rather than the communique that has followed meetings since 2017. The chair's summary does not require unanimity. Meeting chair Dutch climate minister Sophie Hermans said the format was chosen "to make sure we could cover all the subjects" on which there were differences of opinion. All references to climate or greenhouse gas (GHG) emissions in the text were attributed only to "some" or "a large majority of" ministers, while the role of renewables was recognised by "many". And compared with the last communique, from 2024, the document makes fewer mentions of climate and emissions, and no reference to international climate agreements from UN Cop summits in Paris and Dubai. The meeting was marked by interventions by US energy secretary Chris Wright , who criticised the IEA's focus on the energy transition and threatened to pull the US out of the IEA if it does not reform. Wright also said the US would " put pressure " on the IEA to change. European leaders, meanwhile, spoke about the importance of the transition for energy security — a shift of focus from the transition's role in reducing climate change on show two years ago . French economy minister Roland Lescure said: "In France we do not have oil, any more than in the 70s. Our major challenge with fossil fuels is to replace them." And the "strategic answer" regarding energy dependency for France and Europe is electrification, he said. French president Emmanuel Macron yesterday described dependency on fossil fuels as a "vulnerability" for Europe. IEA director Fatih Birol could not confirm whether the agency would maintain its net-zero scenario in its next outlook, saying it "had not thought about that yet". But the agency will keep examining emissions in each of its scenarios, he said. In the outlook published in November, the agency reinstated a "current policies" scenario, which the US welcomed. Alongside the chair's summary, the meeting yielded a joint ministerial declaration on critical mineral supply security, which was an area of "common ground", meeting chair Hermans said. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia’s APA to expand gas pipeline network

19/02/26

Australia’s APA to expand gas pipeline network

Sydney, 19 February (Argus) — Australian gas pipeline operator APA will progress works to expand capacity on its gas network in the eastern states, increasing transmission between Australia's gas-rich northeast and relatively poorer southeast, where shortfalls are expected later this decade. Stage 3 of the East Coast Gas Grid (ECGG) expansion will go ahead, APA said in its results for the half-year to 31 December 2025 on 19 February, with A$480mn ($339mn) to go towards new compressors boosting capacity ahead of the 2028 winter months. The plan was first funded a year ago when A$35mn was earmarked for early works on stages 3, 4 and 5 of the ECGG expansion. Under ECGG expansion 3A, APA will build new compressors and undertake debottlenecking works on the 512 TJ/d (13.7mn m³/d) South West Queensland pipeline (SWQP) and the 590 TJ/d Moomba-Sydney pipeline (MSP). Capacity on the SWQP will rise by about 58 TJ/d, MSP by around 10 TJ/d and APA will deliver an expansion increasing the Young-Culcairn section's lateral capacity by about 39 TJ/d. A further A$220mn will be spent on ECGG 3B to buy pipe and progress a works programme for the proposed 340km, 800 TJ/d Bulloo Interlink, connecting the SWQP and the MSP between Queensland and New South Wales. The project is estimated to cost a total of A$800mn. But a final investment decision for ECGG 3B will depend on policy settings, Canberra's final response to the Gas Market Review and board approval. The projects align with identified market needs, APA said, and also support a necessary increase in gas-fired power generation to support the energy transitions. LNG vs pipeline The company's ambition to pipe more gas southwards may conflict with plans for LNG imports in southern Australia from next year. There are three proposed terminals, plus the Port Kembla Energy Terminal built by Squadron Energy aiming to bridge the identified gap in supply via seaborne imports. APA modelling shows gas delivered from Queensland into southern markets is "materially below the cost of imported LNG," the firm said, proposing that expanding pipelines and increasing northern Australia's output is a better solution than importing LNG. Argus ' Gladstone fob price, an LNG netback indicator calculated by subtracting freight and costs associated with production from the delivered price of LNG to Asia-Pacific, was A$13.65/GJ ($10.25/mn Btu) on 12 February, lower from A$24.46/GJ a year earlier. The AVX, the Argus assessment for month-ahead spot gas deliveries to Victoria, stood at A$11.367/GJ, down by about A$0.07/GJ on the week. Other companies are investing in projects designed to offset the predicted shortfall in southern states, particularly in Victoria where gas exploration spending rose by more than five-fold on the year in July-September 2025. Australian utility Origin this month pledged a further A$25mn for a planned gas storage facility in Victoria APA's revenue for July-December totalled A$1.614bn, slightly down from A$1.621bn over July-December 2024. Underlying net profit after tax was A$126mn, up from A$122mn a year earlier. By Tom Major APA's ECGG expansion plans Project Status Year complete Investment Capacity increase SWQP + MSP compression complete 2023-2024 A$300mn 25% increase across ECGG north to south MSEP conversion complete 2025 A$40mn 20 TJ/d from Moomba to Victoria or 25 TJ/d to Sydney MSP off-peak capacity expansion underway 2026 80–120 TJ/d summer capacity ECGG 3A FID taken Jun-Aug 2028 A$260mn SWQP: 58 TJ/d, MSP: 10 TJ/d, Young-Culcairn lateral: 39 TJ/d ECGG 3B pre-FID 2028 A$800mn 800 TJ/d north-south Future stages pre-FID 2029+ tba 450 TJ/d northern gas to Victoria, 500TJ storage — APA Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Japan’s Jera eyes batteries to extend thermal power use

19/02/26

Japan’s Jera eyes batteries to extend thermal power use

Osaka, 19 February (Argus) — Japan's largest power producer Jera is considering wider use of storage batteries to help prolong the operation of its thermal power fleets. This system would cut the risk of malfunctions by reducing the number of start-stop cycles required for the units given the growing use of intermittent renewable energy. It remains unclear when, where and at what scale Jera will install battery storage systems. The company plans to assess the benefits of battery storage in 2026 by comparing them with the cost of repairing thermal plants, particularly gas-fired units, that break down because of frequent start-up and shutdown cycles, president Hisahide Okuda said on 18 February. Battery storage would have little value if it cannot reliably reduce cycling frequency, he added. Installation of storage batteries is typically required to back up weather-dependent renewable output such as solar and wind. But the need has grown even more because thermal plants have been forced to start up and shut down more frequently than expected in recent years given rising renewable generation. Jera recorded about 110 operational cycles at its coal-fired plants and roughly 12,500 cycles at its gas-fired units in the April 2024-March 2025 fiscal year, up by around 3½ times and 2½ times, respectively compared with 2014-15. An unexpected shutdown of thermal plants would pose risks to stable electricity supply, especially given the limited nuclear output in the Tokyo area and the absence of nuclear generation in the Chubu region, where Jera operates. The Tokyo area has only one reactor — the 1,356MW Kashiwazaki-Kariwa No.6 unit — in operation, which began test runs on 16 February after a 14-year hiatus following the 2011 Fukushima nuclear disaster. Thermal power plants would play a vital role in meeting the expected rises in electricity demand from data centres and in balancing fluctuations in renewable output. It is important to prevent thermal generators from breaking down and to ensure quick repairs when they do, for example by increasing inventories of critical materials, according to Okuda. Securing LNG with sufficient volumes, flexible contract terms and even under emergency-response arrangements will also be essential for continuing to operate gas-fired plants. Jera signed an initial agreement with state-owned QatarEnergy and Japan's trade and industry ministry Meti on 3 February to establish a trilateral co-operation framework that would enable the supply of additional LNG cargoes during emergency situations. This coincided with a 27-year supply deal with QatarEnergy to buy up to 3mn t/yr from 2028. The company also secured a combined 5.5mn t/yr from US suppliers in 2025, under destination-free contracts. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Trinidad and Tobago upbeat over Venezuela gas plans

18/02/26

Trinidad and Tobago upbeat over Venezuela gas plans

Georgetown, 18 February (Argus) — The government of Trinidad and Tobago expressed optimism that offshore gas projects with Venezuela will go ahead following the ouster of former Venezuelan president Nicolas Maduro and eased US sanctions. "We are quietly optimistic that given the recent changes we will proceed with those projects," energy minister Roodal Moonilal said today at the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana. "The agreements in Venezuela remain — there'll be no discontinuation or cancellations." Moonilal said he was also optimistic that the first development will go ahead on an accelerated schedule, given its location about 20km from Tobago, and should be ready by mid-to-late 2027. Trinidad and Tobago has been in talks with Venezuela over developing cross-border fields for around two decades. Last week, the US lifted all restrictions on Venezuelan oil and natural gas operations by Chevron, BP, Shell, Italy's Eni and Spain's Repsol. Shell and BP are partners in a project to tap Venezuela's offshore Dragon gas field to feed the Atlantic LNG export terminal in Trinidad and Tobago. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

UN head calls for platform to discuss fossil fuel shift

18/02/26

UN head calls for platform to discuss fossil fuel shift

London, 18 February (Argus) — UN secretary-general Antonio Guterres today called for a "dedicated global platform for honest dialogue on transitioning away from fossil fuels", in order to push forward a global energy transition. "This platform must bring together producers and consumers, developed and developing countries, public and private financial institutions and civil society," Guterres told a ministerial meeting hosted by energy watchdog the IEA today. The platform should deliver a transition plan for the world that "aligns investment, energy security and climate goals", he added. Almost 200 countries agreed to transition away from fossil fuels at the UN Cop 28 climate summit, in December 2023. It was the first time that language around reducing all fossil fuels had appeared in a Cop text, but progress on the topic has since faltered. Geopolitical uncertainty has pushed energy security further up the agenda for many policymakers , though many note that renewable energy provides energy sovereignty and is cheaper than fossil fuelled alternatives. A shift away from fossil fuels "cut emissions, strengthen energy security, power development, and build lasting stability", Guterres said. The past three years, over 2023-25, have been the hottest on record , a group of science and weather agencies found last month. The rate of atmospheric CO2, the single largest contributor to global warming, is accelerating , "primarily driven by human-caused emissions from fossil fuel burning and deforestation," UK weather agency the Met Office said earlier this month. "Those who lead this transition will lead the global economy of the future. Yet some fossil fuel interests remain hell-bent on slowing progress; Spreading disinformation; pretending that a transition is unrealistic or unaffordable… The world's addiction to fossil fuels is one of the greatest threats to global stability and prosperity", Guterres said. "The IEA has helped make the clean energy transition undeniable", Guterres said today. But his comments may provoke ire from the US. The country's energy secretary Chris Wright said yesterday that if the IEA remains "so dominated and infused with climate stuff, then we're out". By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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