PetroVietnam Gas to buy 1st LNG cargo from Shell
PetroVietnam Gas (PV Gas), a unit of state-owned energy company PetroVietnam, has signed an agreement with Shell for the delivery of the first LNG cargo to Vietnam, the company announced on May 24.
The cargo will be used to commission PV Gas’ Thi Vai LNG import terminal. Reuters last month reported that PV Gas issued a tender seeking to buy Vietnam's first cargo. The tender attracted “significant attention” from global LNG suppliers, the company said.
The terminal will have a capacity of 1mn metric tons/year in the first phase. In phase two the capacity will increase to 3mn mt/year. PV Gas on May 5 got approval from the government to import LNG.
The phase one components of the Thi Vai terminal include LNG tanks with a capacity of 180,000 m3. PV Gas said that the terminal will play “a pivotal role” in augmenting gas supply by providing gas to consumers, including the Nhon Trach 3 and 4 power plants, and industrial customers, and addressing the country's gas shortage beyond 2023.
“Together with the forthcoming Son My LNG import terminal, with an anticipated capacity of up to 10mn mt/yr of LNG upon completion, PV Gas' LNG infrastructure will effectively meet the energy demands of the southern region in the future,” the company said.
PV Gas has signed a joint venture agreement with US-based AES Corp regarding the operation of the Son My LNG import terminal. The project will have a capacity of 3.6mn metric tons/year in the first phase and will go up to 9mn mt/yr in the subsequent phase.