US’s Excelerate Energy eyes LNG terminal in northern Vietnam

Texas-based liquefied natural gas (LNG) importer Excelerate Energy and ITECO JSC, a Vietnamese private industrial company, have signed a term sheet to co-develop an onshore regasification terminal that will be the first LNG terminal in northern Vietnam.

The terminal, named Northern Vietnam LNG Terminal, will be located in the port city of Hai Phong and have a total import capacity of 1.2 million tons per annum (MTPA), the firm said in its Q2/2024 investor presentation.

The facility will be constructed in two phases. Phase one is expected to have a capacity of 0.7 MTPA and commence operations in 2027.

The development of the project is subject to the execution of definitive agreements, regulatory approvals, and the satisfaction of other conditions, Excelerate said.

Excelerate noted that it would hold exclusive rights to supply LNG to the terminal and be considered for the Operation & Maintenance (O&M) provider contract.

The firm is negotiating with an anchor customer for the initial 0.7 MTPA.

The terminal project comes as Vietnam strives to build up its energy infrastructure in the northern region and meet energy needs as foreign manufacturers are rushing to Vietnam.

In December 2021, ITECO signed a share purchase agreement with Tokyo-headquartered JAPEX to proceed with an LNG terminal project in the Nam Dinh Vu Industrial Park, Hai Phong city. The two partners hoped to reach a final investment decision (FID) in the second half of 2022.

The initial development plan included the construction of a 50,000 cubic meter (cbm) LNG storage tank, capable of providing up to 650,000 metric tons of LNG annually, and associated jetty facilities. An additional 30,000-cbm storage tank was planned for the latter half of the 2020s. Commercial operation was slated for 2025.