Sembcorp Utilities, a unit of Singapore’s Sembcorp, and Petrovietnam’s subsidiary Petrovietnam Technical Services Corporation (PTSC), have together agreed to explore opportunities for developing offshore wind farms in Vietnam to export power to Singapore.

The two companies have received a letter of intent from the Energy Market Authority, Singapore’s regulatory body. They will now work to secure conditional clearance from the regulatory authority for the project.

PTSC is a Vietnamese technical services provider with the oil and gas and offshore renewable energy industry, and the first and the only company to gain a permit from the country’s Ministry of Natural Resources and Environment to conduct wind, marine and geological surveys.

This 200,000-hectare (583 square nautical miles) project will be located offshore South Vietnam.

The announcement was made during Singapore Prime Minister Lee Hsien Loong’s visit to Vietnam. The project is expected to involve extensive collaboration and cooperation between the two governments.

In February 2023, Reuters reported that Sembcorp entered into discussions with the Vietnamese Government for the development of a submarine power transmission line between the two countries.

Sembcorp and PTSC also signed an agreement to build offshore wind farms with a total capacity of 2.3GW by 2030.

The collaboration will help to realise what Splash247.com describes as the "Digital – Green Economic Partnership" between the two countries.