U.S.-based floating storage and regasification units (FSRUs) and liquefied natural gas (LNG) solutions provider Excelerate Energy has joined forces with PetroVietnam Technical Services Corporation (PTSC), a subsidiary of Vietnam Oil and Gas Group (PetroVietnam), to explore FSRU-based technical solutions for LNG imports into Vietnam.
The duo’s strategic partnership agreement will enable the companies to jointly study FSRU-based technical solutions to boost LNG imports into Vietnam by leveraging their unique strengths and combined resources to deliver affordable and reliable energy solutions that address the country’s growing energy demands while supporting its transition to carbon neutrality.
Therefore, the two companies will undertake joint feasibility studies to assess the viability of FSRU opportunities in Vietnam, optimize existing natural gas infrastructure, and bolster domestic supply with regasified LNG to help meet the growing demand for natural gas and stimulate the development of a regional gas market.
Steven Kobos , President and CEO of Excelerate, commented: “Signing this agreement marks a significant milestone in the collaboration between Excelerate Energy and PetroVietnam Technical Services Corporation. We are committed to working together to address Vietnam’s energy challenges and contribute to the country’s sustainable development.”
The U.S. firm sees its strategic partnership with PTSC as an important next step in its broader strategy to invest in the rapidly growing Vietnamese LNG market. To this end, Excelerate recently penned a term sheet with ITECO Joint Stock Company to co-develop a greenfield LNG import terminal in Hai Phong, Vietnam.
PTSC claims that its deal with Excelerate Energy will lay the first bricks for long-term cooperation in developing FSRU projects in Vietnam while contributing to efforts made to enhance the capacity of the Vietnamese oil, gas, and energy industry in the international arena.
“With great potential for offshore wind resources, Vietnam is emerging as an attractive destination for wind energy projects. PTSC is ready to actively contribute to this development, while building a solid position in the international market, contributing to building a sustainable future for the energy industry in Vietnam and the world,” explained the Vietnamese player.
Recently, Excelerate Energy struck a deal with Wärtsilä to get the Finish player’s reliquefaction systems for retrofit and installation onboard one of the U.S. firm’s FSRUs.
Meanwhile, the U.S. Federal Energy Regulatory Commission (FERC) is mulling over a potential change for natural gas infrastructure project reviews in light of recent court rulings. Aside from prompts to maintain the energy industry’s regulatory certainty, the heat is being turned up on FERC to fortify the agency’s environmental oversight of gas and LNG projects.