Vietnam’s LNG terminal draws closer to start-up date

Nebula Energy’s Dubai-headquartered subsidiary AG&P LNG and its partner Hai Linh Company, a Vietnam-based petroleum product import terminal and trader, have disclosed the start of commissioning activities for Vietnam’s liquefied natural gas (LNG) terminal, one of two existing LNG terminals in the country.

Following the launch of the expression of interest (EOI) for supplying commissioning LNG cargo to the terminal, the tender for the commissioning cargo is expected to be issued in early June 2024 and awarded by the end of that month, based on the information shared at the Cai Mep LNG Terminal Commissioning Symposium hosted on May 8, 2024.

With commercial operations slated to start in September 2024, integrated LNG supply solutions at the terminal will be provided by Vietfirst Gas, a downstream joint venture between the Dubai-based player and its Vietnamese partner.

This comes on the heels of Nebula Energy’s announcement of a $300 million investment in AG&P LNG in January, and confirmation of the latter purchasing a 49% stake in the Hai Linh-developed Cai Mep LNG terminal in March.

Karthik Sathyamoorthy, AG&P LNG CEO, noted: “I am thrilled to announce the start of the commissioning of the Cap Mep LNG Terminal. We are now also on track to start the commercial operations of the Terminal in September 2024. 

“The hard work and can-do spirit of the team from Hai 1 Linh, AG&P LNG and Nebula Energy to meet our commitment of LNG delivery by Q3 2024 has been nothing short of extraordinary.”

Sathyamoorthy also shared that a second definitive agreement has been inked with “a prominent demand aggregator,” with the first definitive agreement for 1 million tonnes per annum (mtpa) offtake signed with a hydro power plant (HPP) in March 2024. 

According to AG&P LNG, six additional letters of intent (LOIs) have been signed with six demand aggregators for downstream LNG distribution since the company purchased an interest in the terminal in March.

Located in Vũng Tàu district, near the Mekong River delta, the Cai Mep LNG terminal has a 3 mtpa capacity, expandable to 6 mtpa. The three onshore tanks can store 220,000 meters squared of LNG, which can be reloaded into smaller vessels thanks to break-bulk capabilities.

The terminal features 14 truck-loading bays for LNG and compressed natural gas (CNG) filling, and has a pipeline connection to what is said to be Vietnam’s largest power generation complex, Phu My, boasting a gas-fired capacity of 3.9 GW.

Le Van Tam, CEO of Hai Linh Company, remarked: “I am excited to announce the commissioning of our Cai Mep LNG Terminal. We at Hai Linh are privileged to have AG&P LNG and Nebula Energy as our partners as we work towards unlocking the potential LNG demand across multiple sectors and help reinforce energy security in the country.”

Earlier this year, the UAE company signed a new commercial deal with Australia’s Venice Energy to provide a converted floating storage regasification unit (FSRU) for its Outer Harbor LNG project at Port Adelaide.