US's Excelerate Energy affirms intention to turn Vietnam into LNG hub for ASEAN

Excelerate Energy wants to make Vietnam a center for LNG distribution to the ASEAN region, president and CEO Steven Kobos told Prime Minister Pham Minh Chinh at a meeting in Hanoi on Thursday.

Citing Excelerate Energy's deal with PV Gas on arranging long-term LNG sources from the United States for the Vietnamese market, Kobos proposed that the Vietnamese Government create conditions for the group to invest in developing LNG infrastructure, ensuring stable LNG supply.

The LNG giant aims to establish a joint venture with Vietnamese partners to expand its market, turning Vietnam into an LNG distribution center of ASEAN, he added.

In March this year, in Washington D.C., PV Gas, a subsidiary of state-owned Petrovietnam, signed MoUs with ConocoPhillips and Excelerate Energy on long-term LNG purchase agreements.

Accordingly, Excelerate Energy and PV Gas will collaborate on a plan to secure reliable and stable LNG supply sourced from the United States as early as 2026.

In response, Chinh said he welcomes Excelerate Energy's increasing cooperation with Vietnamese partners as it has both political and economic significance, contributing to developing a sustainable, balanced trade relationship between Vietnam and the United States.

Welcoming Excelerate Energy's proposal to turn Vietnam into a regional LNG distribution center, the Prime Minister suggested the group continue to research and consider expanding cooperation with Vietnamese enterprises in providing technology solutions and long-term LNG supply.

"Vietnam advocates building an LNG distribution and storage center to serve the country and ASEAN, including power plants that supply electricity to ASEAN," he stressed, mentioning a cooperation agreement signed recently on exporting renewable energy from Vietnam to Malaysia and Singapore.

On the occasion of the 46th ASEAN Summit in Kuala Lumpur, Malaysia, on May 20, Chinh and his Malaysian and Singaporean counterparts Anwar Ibrahim and Lawrence Wong witnessed the signing of the agreement.

Accordingly, the Malaysian Energy Joint Venture between Tenaga Nasional Berhad and Petroliam Nasional Berhad will cooperate with PetroVietnam Technical Services Corporation (PTSC), a member of state-owned Petrovietnam, and Sembcorp Utilities Pte Ltd of Singapore to exploit Vietnam's renewable energy potential, especially offshore wind power, generating clean electricity and supplying it across borders.

The parties will jointly study the feasibility of exporting clean electricity from Vietnam to Malaysia and Singapore via submarine cables. They will also consider the possibility of providing additional power sources and storage systems to ensure stability.

The Prime Minister said he hopes that Excelerate Energy will develop an LNG supply chain in Vietnam and cooperate with Vietnamese partners to invest in building smart and modern LNG storage facilities this year, or in 2026.

He suggested the group to transfer technology and management experience to Vietnam to effectively operate the LNG supply sector, and share effective solutions to reduce emissions in LNG transportation and use.

Previously, Peter Haas, strategic advisor at Excelerate Energy, at a meeting with Vietnam's Minister of Industry and Trade Nguyen Hong Dien on May 20 (U.S. time), had stated that Excelerate Energy wants to turn Vietnam into a center for LNG distribution to the ASEAN region.

Dien, also head of Vietnam's Government Negotiation Delegation, was in Washington D.C for negotiations on a reciprocal trade agreement with the U.S.

Excelerate Energy is a world's leading company in the LNG field, with presence in more than 60 countries. The group's daily LNG transportation accounts for one sixth of the U.S.'s export of this product, the Vietnamese government's news portal reported.