Foreign investors interested in Vietnam’s LNG infrastructure
LNG Thi Vai Terminal in the southern province of Ba Ria-Vung Tau (Photo: VNA) |
The Cai Mep LNG Terminal is currently seeking cargo to begin commissioning tests, putting it on track to become the second of its kind in Vietnam to come into operation, according to a report by Reuters late August.
CEO of AG&P LNG Karthik Sathyamoorthy said his firm received an import licence, and is working hard to accelerate the commissioning process, targeting completion within the next three months.
The company plans to finalise the commissioning of cargo this month for delivery between late October and mid-November, he said.
Earlier in March, the company - a subsidiary of Nebula Energy - acquired a 49% stake in Cai Mep LNG terminal located in the southern province of Ba Ria-Vung Tau.Meanwhile, in June, the US-based LNG company Excelerate Energy signed a memorandum of understanding with Vietnam's ITECO JSC to jointly develop a greenfield LNG import terminal in the northern port city of Hai Phong.
Ramon Wangdi, Vice President for Asia Pacific for the gas distribution company Excelerate Energy said that as one of the fastest-growing economies in Asia, Vietnam is an attractive emerging market for foreign investors.
Wangdi said this growth is driven by a rapid increase in energy demand, where LNG will play a key role over the coming decades.
When Vietnam transitions from carbon-intensive fuels such as coal and oil, to renewables like solar and hydropower, LNG will be crucial in helping the country achieve net zero by 2050, he said.
He added that as a global company, Excelerate is exploring investment opportunities in related infrastructure across Vietnam and the Asia Pacific to support this shift in energy strategy.Vietnam set a goal of expanding its LNG-based power initiative from virtually zero to over 20 GW by 2045.
This ambition will position the nation as a key player in the global LNG industry, Wangdi said.Meanwhile, the Son My LNG Terminal - a joint venture between AES Group and PetroVietnam Gas (PV Gas) - has received approval in principle from the Binh Thuan Provincial People's Committee.
The project is slated for completion in 2027.Adam Sitkoff, Executive Director of the American Chamber of Commerce in Hanoi said that US businesses are excited about opportunities in Vietnam, especially in the LNG infrastructure.
However, to turn this interest into real investments, Vietnam needs to demonstrate to international investors that large-scale infrastructure could be deployed under international banking standards.
He said it is crucial that LNG terminals and all buyers have to commit to progress along the same development timeline to unlock international funding.
Vietnam’s 8th Power Development Plan and bilateral agreements reflect the strong relationship between Vietnam and US in promoting energy cooperation. This cooperation is the foundation for the confidence of the US business community to invest in multi-billion dollar LNG projects in Vietnam.
Major infrastructure investments are required to import LNG, including LNG storage and import facilities.According to FiinGroup, Vietnam has taken the first step in developing LNG infrastructure when PV Gas inaugurated Vietnam's first LNG terminal in late 2023. Among 13 LNG power plants that have been approved in Vietnam with a total capacity of 24 GW, two plants, Nhon Trach III & IV and Hiep Phuoc, are under construction, while the remaining 11 plants are still in the planning stage.
Three of the plants are still looking for potential investors.In addition, several commercial terminals including PV Gas’ Thi Vai LNG Terminal and AG&P’s Cai Mep LNG Terminal, have been put into operation or are under construction. These terminals are for both thermal power plants and local industrial customers.
Anh Nguyen, head of Market Research and Consulting at FiinGroup, said that LNG will be a promising industry in Vietnam in the coming years.
The 8th power development plant focuses on transitioning from traditional energy sources such as coal and hydropower and reducing the proportion of these energy sources in electricity production.
The plan targets LNG to contribute 14.9% to Vietnam’s electricity supply.Meanwhile, the Ministry of Industry and Trade has issued new power purchase agreement guidelines in 2024, removing major barriers to the development of LNG and natural gas infrastructure. These guidelines provide investors and Vietnam Electricity (EVN) with clearer guidance to reach agreements effectively./.
See also
Efforts to bring electricity to remote villages of Ha Giang Province
15:15 | 04/11/2024 Energy
PM calls for Qatar's support for energy development in Việt Nam
08:56 | 01/11/2024 Energy
Binh Dinh seeks German investment in offshore wind power project
09:02 | 31/10/2024 Energy
Nuclear power plays an important role in energy security: ministry
16:01 | 25/10/2024 Energy
UK commits to be partner of Việt Nam in energy transition
16:03 | 24/10/2024 Energy
EVN wants to invest in more power generation projects
15:54 | 24/10/2024 Energy
See more news
Nuclear power back on table to secure Vietnam’s energy future
11:05 | 24/10/2024 Energy
Sci-tech ministry backs restarting nuclear projects in Việt Nam
16:09 | 22/10/2024 Energy
Vietnam promotes energy transition for sustainable development
15:43 | 22/10/2024 Energy
Prime Minister calls for mulling over nuclear power development
16:49 | 20/10/2024 Energy
PM urges stable electricity supply amid rising demand
14:44 | 19/10/2024 Energy
Amended Electricity Law is expected to remove bottlenecks for gas-fired and offshore wind power
08:46 | 18/10/2024 Energy
Revising the Electricity Law to create a legal framework for developing energy sources
08:55 | 16/10/2024 Energy
Increase in electricity prices concerns manufacturers
10:22 | 14/10/2024 Energy
Up 4.8 percent, Vietnam's electricity price high or low in region?
10:18 | 13/10/2024 Energy
MoIT approves price framework to purchase electricity from Laos
08:38 | 11/10/2024 Energy
Seven strategic directions to lead the nation into a new era
17:04 | 05/11/2024 Infographic
WB, Switzerland help boost Viet Nam’s sustainable urban development
16:53 | 05/11/2024 Society
Finance ministry proposes extending environmental tax cut on fuel products in 2025
16:47 | 05/11/2024 Policy
Workshop looks to address environmental management issues in industrial areas
16:34 | 05/11/2024 Environment
PM visits President Ho Chi Minh relic site in Kunming
16:30 | 05/11/2024 News and Events
Multimedia
Seven strategic directions to lead the nation into a new era
17:04 | 05/11/2024 Infographic
Delicacy of Hà Nội’s autumn
11:29 | 04/11/2024 Lifestyle
Vietnam-Cuba traditional solidarity, special friendship
10:12 | 02/11/2024 Infographic
Vietnam expands FTA network
09:15 | 01/11/2024 Infographic
Vietnam – Qatar friendship and multifaceted cooperation
09:06 | 31/10/2024 Infographic
Finance ministry proposes extending environmental tax cut on fuel products in 2025
16:47 | 05/11/2024 Policy
NA deputies call for solutions to ensure the feasibility of drug prevention and control programme
17:33 | 03/11/2024 Policy
15th NA’s 8th session to further discuss legislative, inspection work next week
16:58 | 03/11/2024 Policy
Developing education, training to serve new era of nation: PM
09:57 | 03/11/2024 Policy
Efforts to bring electricity to remote villages of Ha Giang Province
15:15 | 04/11/2024 Energy
Vietnamese F&B industry works to catch up with green consumption trend
17:38 | 03/11/2024 Industry
PM calls for Qatar's support for energy development in Việt Nam
08:56 | 01/11/2024 Energy
Efforts made to create breakthrough in Vietnam's automobile industry
09:28 | 31/10/2024 Industry
Foxconn to invest US$80 million in Bắc Giang for chip manufacturing expansion
16:16 | 04/11/2024 Investment
Da Nang to invest additional 16 million USD into software park
17:19 | 03/11/2024 Investment
PM receives heads of leading investment firm, authority of Qatar
09:07 | 01/11/2024 Investment
Forum suggests suitable orientations for green development strategy in Lam Dong
15:44 | 31/10/2024 Investment
Krungsri proposes accelerating purchase of 50% of SHBFinance’s charter capital
15:46 | 05/11/2024 Finance-Banking
Finance ministry proposes two price management scenarios for year-end
10:11 | 04/11/2024 Finance-Banking
Banking sector prioritises support for import-export firms
16:35 | 02/11/2024 Finance-Banking
Smart Banking 2024 workshop and exhibition held
15:32 | 31/10/2024 Finance-Banking
Workshop looks to address environmental management issues in industrial areas
16:34 | 05/11/2024 Environment
More accurate forecasts at all levels needed to reduce coastal disaster risk
15:07 | 04/11/2024 Environment
Nearly-98-million-USD environment project inaugurated in Ninh Thuan
10:13 | 03/11/2024 Environment
Northern region to experience first cold weather of this winter
14:30 | 31/10/2024 Environment
Technology “key” to attract FDI
09:09 | 05/11/2024 Science - Technology
HCM City partners with Google for Education in digital transformation
14:47 | 04/11/2024 Science - Technology
Việt Nam develops 'purely Vietnamese' generative AI
09:45 | 01/11/2024 Science - Technology
Vietnam’s first semiconductor expo underway in HCM City
09:36 | 01/11/2024 Science - Technology
WB, Switzerland help boost Viet Nam’s sustainable urban development
16:53 | 05/11/2024 Society
VRA proposes over $7.2b for Lào Cai-Hà Nội-Hải Phòng-Quảng Ninh Railway project
09:22 | 05/11/2024 Society
Eastern section of $1.23b southern expressway will soon be opened for use
15:03 | 04/11/2024 Society
Vietnam aims to produce innovative medicines
14:53 | 04/11/2024 Society
190 businesses win Vietnam National Brand Award 2024
10:33 | 05/11/2024 Vietnamese Brands
Vietnamese AI firms have many chances of development
14:51 | 04/11/2024 Vietnamese Brands
Cooperatives play significant role in OCOP product development
14:45 | 04/11/2024 Vietnamese Brands
Cơ Tu ethnic’s farm produce debuts in supermarket system
09:08 | 31/10/2024 Vietnamese Brands
Calligraphy exhibition highlights literary masterpieces
10:53 | 05/11/2024 Culture
VN int’l fashion week Fall/Winter 2024 prepares to open
11:38 | 04/11/2024 Culture
Delicacy of Hà Nội’s autumn
11:29 | 04/11/2024 Lifestyle
$10-billion national target programme on cultural development officially proposed to parliament
18:02 | 02/11/2024 Culture
Time Out lists Vietnam among Top 5 Memorable Christmas Escapes in Asia
10:27 | 05/11/2024 Tourism
Foreign travellers' interest in northern regions still strong after typhoon
14:15 | 04/11/2024 Tourism
Ninh Bình Festival to boost historical heritages of VN’s former capitals
14:10 | 04/11/2024 Tourism
Halal tourism: tackling religious and cultural differences
17:57 | 02/11/2024 Tourism