Vietnam Gas Corporation (PV Gas) has signed a confirmation notice with world leading supplier Shell, whereby Shell will deliver the first LNG cargo to Vietnam, marking a significant milestone in the country's energy sector.
The import will lead to the commissioning and commercial operation of Thi Vai LNG Terminal in the province of Ba Ria-Vung Tau near Ho Chi Minh City, according to a PV Gas release on Wednesday.
PV Gas issued an offer to buy LNG on April 27 and received the attention of a large number of reputable suppliers in the world.
Through the evaluation process, Shell was ranked first and invited by PV Gas to negotiate the confirmation notice for the first commissioning shipment of imported LNG to Thi Vai. Shell is one of the world's largest LNG suppliers.
After commissioning is completed, Thi Vai LNG Terminal will be the first and largest LNG terminal in Vietnam, with a phase one capacity of one million tons per year, then expanded to 3-6 million tons.
Thi Vai LNG Terminal is capable of receiving LNG vessels up to 100,000 tons, with the main items of phase 1 including LNG tanks with a capacity of 180,000 m3 and technological equipment designed in line with latest international and Vietnamese standards and regulations.
Once completed, the system will replenish the supply of about 1.4 billion m3 of gas supply to consumers such as Nhon Trach 3 and 4 power plants, and industrial customers, as well as partially compensate for the shortage of gas in the country after 2023.
Thi Vai LNG Terminal will be an important link in supplying gas to consumers, including the Nhon Trach 3 and 4 power plants and industrial customers.
Along with the under-development Son My LNG import terminal with an expected total capacity of up to 10 million tons of LNG per year when completed, of which PV Gas is the co-owner with the majority capital contribution ratio, PV Gas's infrastructure will basically meet the southern region's energy demand in the future.