Energy Capital Vietnam (ECV), a Vietnam-focused company, has formed an LNG trading and shipping joint venture with Gunvor.
The joint venture will supply LNG to the joint venture on a long-term basis.
An ECV-led consortium is developing an LNG-to-power project in Mui Ke Ga, Binh Thuan Province, in Southeast Vietnam. The newly formed JV will be responsible for trading and shipping on behalf of ECV.
Additionally, Gunvor will supply LNG to the joint venture on a long-term basis.
David Lewis , ECV chairman and CEO said, “as the worldwide LNG market continues to mature—with increasing volumes and trading complexity—this innovative sourcing partnership will help optimize our fuel supply chain and streamline delivery logistics.”
Gunvor’s trading portfolio consists of a significant portion of U.S.-based supply, which will ensure a reliable, stable, and cost-competitive fuel supply to the project and the province as a whole.
Seth Thomas Pietras , Gunvor’s corporate affairs director, said, “The introduction of LNG to the region will initiate a much-needed energy transition and will help contribute to a significant reduction of greenhouse gas emissions. The Binh Thuan province has been seeking a cleaner and more reliable energy source for many years, and the ECV project will also create technical and economic development opportunities for the local population.”
The fully private, multi-phase power project will connect via subsea pipeline to an offshore floating storage and regasification unit (FSRU) to import LNG.
Phase I of the project is targeting the final investment decision (FID) in late 2021 and commercial operational delivery (COD) by 2025.
The project will consume approximately 1.5 million tons per year (mtpa) of LNG, with an ability to increase consumption to reflect subsequent development phases and opportunities presented by market conditions.