Gunvor, ECV Form JV to Ship LNG to Vietnam

Commodities trader Gunvor has formed a joint venture with Energy Capital Vietnam (ECV) for the trading and shipping of LNG to Vietnam, the partners said on December 8.

ECV is leading a consortium developing an LNG-to-power project in the Mui Ke Ga Binh Thuan province of southeast Vietnam. The group aims to take a final investment decision in late 2021 on developing a 1.5mn metric ton/year regasification terminal and a 3.2-GW gas-fired power plant and associated facilities. Commercial operations are due to start in 2025.

Gunvor will supply LNG to the joint venture on a long-term basis, ensuring "reliable, stable and cost-competitiveness fuel supply to the project" from its trading portfolio of mostly US-based LNG exports.

Vietnam included the gas-to-power scheme in a national development plan in August. The country wants to expand the role of gas in its energy mix at the expense of coal, by increasing its LNG import capacity and developing more domestic resources.

Gunvor shipped some 16mn mt of LNG last year, cementing its position as the world's largest independent trader of the super-cooled gas. It overtook larger rivals Trafigura and Vitol in the market in 2018.