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Deepening Contradictions in Climate Actions
US$
415 million
from JBIC | Vietnam Block B, Vietnam
Satellite view of the O Mon PowerComplex along the Hau River in CanTho City, Mekong Delta Region. (Photo taken from Google Maps, ©2024 Airbus, CNES / Airbus, Maxar Technologies)
Overview
  • The Block B-O Mon Gas-to-Power Project Chain is Vietnam’s largest gas project, financed by Japan, involving the extraction of gas from the Block B field to fuel the 3.81-GW O Mon Power Complex.
  • As components of the Block B-O Mon Gas-to-Power Project Chain, the gas extracted from the Block B gas field will solely fuel gas plants in the 3.81-GW O Mon Power Complex. 
  • The project supports Vietnam’s energy needs but contradicts climate commitments by promoting fossil gas, which is a high emitter of methane.
  • The O Mon Power Complex will be developed on a tributary of the Mekong River, one of the world's largest freshwater fishing grounds.
Criticisms
  • Contradicts climate commitments of Japan and Vietnam by supporting fossil gas development.
  • Not aligned with the International Energy Agency’s conclusion that there is no space for new oil and gas fields to meet Net Zero by 2050.
  • Harms critically-endangered species and disrupts vital freshwater ecosystems and migration routes for economically significant marine life via the O Mon Power Complex.
  • Like all LNG plants, it emits methane, which has 80 times the heat-trapping potential of carbon dioxide for 20 years after its release, as well as toxic chemicals such as sulfur dioxide and mercury.
And more.

Financing Block B development is a clear contradiction to Japan’s and Vietnam’s climate commitments.

The O Mon Power Complex is located on a tributary to the Mekong river, where fishing is a crucial economic activity.
Failing to Commit

Japan and Vietnam both pledged to reduce emissions and reach net zero by 2050. Supporting Block B development, however, is a clear contradiction of their climate commitments. In 2021, the International Energy Agency (IEA) reported that there should be no new oil and gas fields to meet Net Zero by 2050. While the Vietnamese government announced through its Power Development Plan 8 (PDP 8) its goal to reduce the share of coal power in the country’s energy mix, it is turning to fossil gas as a supposed transition fuel. But fossil gas is a fossil fuel fallaciously marketed as “clean.” In fact, fossil gas emits methane, which has 80 times the heat-trapping potential of carbon dioxide over the first 20 years it is released in the atmosphere.