Hanoi, October 07, 2024 – The Europe Today: Foreign investors, particularly from the United States, have shown a growing interest in Vietnam’s liquefied natural gas (LNG) infrastructure as the country ramps up efforts to meet its burgeoning energy demands. The Cái Mép LNG Terminal, located in the southern province of Bà Rịa – Vũng Tàu, is preparing for commissioning tests and is on track to become Vietnam’s second operational LNG terminal, according to a report by Reuters in late August.
Karthik Sathyamoorthy, CEO of AG&P LNG, confirmed that the company, which acquired a 49% stake in the Cái Mép LNG Terminal in March, has received an import licence and is expediting the commissioning process. The company plans to finalize the delivery of LNG cargo between late October and mid-November 2024, aiming to complete the commissioning within the next three months.
In addition, US-based Excelerate Energy is set to collaborate with Vietnam’s ITECO JSC to develop a greenfield LNG import terminal in Hải Phòng, following a memorandum of understanding signed in June. Excelerate Energy’s Vice President for Asia Pacific, Ramon Wangdi, highlighted Vietnam’s rapid economic growth and increasing energy demands, noting that LNG will be critical in the country’s transition to cleaner energy sources such as solar and hydropower.
“Vietnam’s goal of achieving net zero emissions by 2050 will depend heavily on LNG as it shifts away from carbon-intensive fuels like coal and oil,” Wangdi said. He added that Excelerate is exploring infrastructure investment opportunities across Vietnam and the Asia Pacific to support this transition.
Vietnam’s 8th Power Development Plan sets an ambitious target to expand LNG-based power capacity from zero to over 20 GW by 2045. The plan also aims for LNG to contribute 14.9% to the country’s electricity supply as part of a broader strategy to reduce reliance on coal and hydropower.
The Sơn Mỹ LNG Terminal, a joint venture between AES Group and PetroVietnam Gas (PV Gas), received approval from Bình Thuận Provincial authorities and is expected to be completed by 2027. Meanwhile, US businesses remain optimistic about Vietnam’s LNG infrastructure, according to Adam Sitkoff, Executive Director of the American Chamber of Commerce in Hanoi. However, he emphasized the need for Vietnam to ensure that large-scale infrastructure projects meet international banking standards to secure global investments.
The Vietnamese government has already taken steps to foster LNG development, with PV Gas inaugurating the country’s first LNG terminal in 2023. Among the 13 approved LNG power plants with a total capacity of 24 GW, several are currently under construction or in search of investors.
Anh Nguyễn, head of Market Research at FiinGroup, affirmed the growing promise of Vietnam’s LNG sector, citing the Ministry of Industry and Trade’s new power purchase agreement guidelines issued in 2024. These guidelines aim to remove barriers and provide clearer pathways for LNG infrastructure development, ensuring effective cooperation between investors and Vietnam Electricity (EVN).
As Vietnam continues to attract foreign interest, LNG is set to play a pivotal role in the country’s energy landscape in the coming years.
