Singapore-headquartered AG&P LNG, a subsidiary of the U.S.-based Nebula Energy, has acquired a 49% stake in Cai Mep LNG terminal in the southern province of Ba Ria-Vung Tau.
In a Thursday statement, AG&P LNG, a leading LNG terminals and downstream infrastructure business, stressed the importance of its acquisition, noting that the $500-million Cai Mep LNG terminal was one of only two LNG terminals in Vietnam.
It has a capacity of three million tons per annum (MTPA) that can be expanded to six MTPA.
The other one terminal, also located in the same province, is LNG Thi Vai.
The Cai Mep LNG terminal is being developed by local firm Hai Linh Company Limited. The facility has pipeline connectivity to Vietnam’s largest power generation complex, the Phu My industrial zone, with a gas-fired capacity of 3.9 GW.
The terminal is strategically located near the Mekong Delta and has three onshore tanks totaling 220,000 cubic meters of LNG storage, and LNG break-bulk capabilities that allow it to reload LNG into smaller vessels. With a total of 14 bays for CNG and LNG truck-loading, the Cai Mep LNG Terminal is well-connected via multiple highways to several nearby demand centers to provide reliable access to LNG.
The AG&P LNG team has already worked closely with Cai Mep LNG terminal to operationalize the terminal by the third quarter of 2024, said CEO Karthik Sathyamoorthy.
“Cai Mep LNG terminal will play a pivotal role in enhancing Vietnam’s energy security while paving the way for energy transition in the country,” he added.
Vietnam has no LNG-fired power plant in operation at present. Some major LNG-fired power projects in the pipeline are Nhon Trach 3 and Nhon Trach 4 in Dong Nai province, a $2.23 billion project in Quang Ninh province, and the $2 billion Thai Binh LNG power plant in the eponymous northern province.