AG&P LNG, a subsidiary of Nebula Energy, has acquired a 49% stake in the Cai Mep liquified natural gas (LNG) terminal.
Located in the Vũng Tàu district of South Vietnam, the $500m Cai Mep LNG Terminal was developed by Hai Linh Company, a Vietnamese petroleum product importer and trader.
The terminal, which has a capacity of three million tonnes per annum (mtpa) and is expandable to 6mtpa, is one of only two existing LNG terminals in the country.
Situated near the Mekong River Delta, the terminal boasts three onshore tanks with a combined capacity of 220,000m³ for LNG storage.
It also features LNG break-bulk capabilities, enabling the reloading of LNG into smaller vessels for distribution.
The terminal's infrastructure includes 14 bays for both compressed natural gas and LNG truck-loading and is well-connected to the Phu My industrial zone via pipeline.
Multiple highways link the terminal to nearby demand centres, ensuring reliable LNG access.
In a concurrent move, AG&P LNG has entered into a strategic partnership with Hai Linh Company to establish a joint venture focused on LNG trading and downstream gas distribution within Vietnam.
The Cai Mep LNG Terminal is currently undergoing pre-commissioning works and is expected to commence operations in Q3 2024.
Once operational, it will facilitate LNG supply to gas-fired power plants and various industries in South Vietnam.
AG&P LNG CEO Karthik Sathyamoorthy said: "Strategically located, Cai Mep LNG will enable reliable LNG access to multiple power plants in its vicinity, including Hai Linh's Hiep Phuoc Power Plant – currently under construction – and to the industries in the South Vietnam region.
“AG&P LNG team has already worked closely with the Cai Mep LNG Terminal team to operationalise the terminal by Q3 2024."
Hai Linh Company CEO Le Van Tam said: "Rapid industrialisation and strong economic growth currently being experienced by Vietnam are expected to generate strong gas demand growth led by power and industrial sectors, combined with the balanced LNG supply market.
“With this partnership, we will be able to expedite the terminal's start-up and commissioning and LNG terminal operations into Vietnam and serve the exponentially growing LNG demand in our country."
Last month, Nebula Energy acquired a majority stake in AG&P LNG for $300m, to accelerate the development of LNG terminals across emerging markets in South and South East Asia.
