Vietnam’s Cai Mep liquified natural gas (LNG) terminal is looking to take in its first cargo so it can start commissioning tests for the new facility.
Located in the Ba Ria Vung Tau province, south Vietnam, the facility will be the country’s second terminal to import the fuel, with the capacity to import 3m metric tonnes of LNG a year.
The country has ambitious LNG development plans to eventually reduce the reliance on coal.
Vietnam is set to build a fleet of 13 LNG-fired power plants that could account for 15% of the country’s total installed power generation by 2030.
According to Offshore Technology’s parent company, GlobalData, Vietnam’s capital expenditure for LNG development will be $2m in 2024. This is expected to increase to $47m in 2029, highlighting the country’s commitment to LNG development.
The Cai Mep import terminal is operated by Cai Mep LNG and is a joint venture between Singapore-based Atlantic, Gulf and Pacific LNG (AG&P LNG) and Vietnamese petroleum trader Hai Linh Company.
Reuters reported that the cargo previously sought to begin commissioning tests at the Cai Mep facility will be ready for delivery in October.
CEO of AG&P LNG, Karthik Sathyamoorthy, told the news outlet the company was “working on accelerating the commissioning and target to complete [it]in the next three months.”
The October deadline is a slight delay from scheduled plans after AG&P said in May that the terminal was on track to begin commercial operation in September.
Vietnam has imported over 300,000t of LNG on a spot basis through its first LNG import terminal, the Thi Vai terminal operated by PetroVietnam gas. The facility, according to GlobalData, has an import capacity of 48.70b cubic feet of gas.
Cargoes were shipped in mostly to power existing gas-fired plants to meet increasing energy demand during heatwaves earlier this year.
