US-listed Excelerate Energy is teaming up with Vietnam Oil and Gas Group (PetroVietnam) to look at floating storage and regasification unit-based terminal solutions.
Excelerate said it has signed a strategic partnership agreement with PetroVietnam Technical Services Corp, a subsidiary of the Vietnamese company, to jointly study FSRU-based technical solutions for LNG imports into Vietnam.
Under the agreement, the pair will conduct joint feasibility studies on FSRU opportunities in Vietnam.
These will aim to optimise existing natural gas infrastructure and add to domestic supply with regasified LNG in an effort to meet the growing demand for natural gas and stimulate the development of a regional gas market, Excelerate said.
Company president and chief executive Steven Kobos said the agreement marks “a significant milestone” in the collaboration between the two companies. “We are committed to working together to address Vietnam’s energy challenges and contribute to the country’s sustainable development,” he said.
Excelerate said the partnership is an important next step in its broader strategy to invest in the rapidly growing Vietnamese LNG market.
In June 2024, Excelerate announced it had signed a term sheet with Vietnamese-based private development company ITECO Joint Stock Co to co-develop a 1.2m tonnes per annum greenfield LNG import terminal in Hai Phong, Vietnam.
A first phase of what Excelerate called the Northern Vietnam LNG Terminal would have a capacity of 0.7 mtpa with a planned commercial start date of 2027.
In a results presentation in August, Excelerate said it would hold the exclusive rights to supply LNG to the planned terminal and would be considered for the operation and maintenance of the facility.
The company also said it is in talks with an anchor customer who would take the initial phase one capacity.
Vietnam has seen a surge in interest in LNG import terminal development with almost 30 permit applications for facilities at one point.
Vietnam’s Ministry of Development and Trade has approved the country’s energy policy, which detailed that it will take 10 to 15 mtpa of LNG to be used for the power sector by 2030.
To date, the country has one land-based facility — the PetroVietnam-controlled 1 mtpa Thi Vai LNG terminal, which started up in July 2023.
Gas infrastructure and distribution company AG&P LNG has bought a 49% stake in the soon-to-start-up, $500m, 3 mtpa Cai Mep LNG Terminal in south Vietnam, which is being developed in partnership with petroleum product terminal and trader Hai Linh Co in the Vung Tau district.
