Liquefied natural gas (LNG) terminal and downstream infrastructure firm AG&P LNG has acquired a 49 percent stake in the Cai Mep LNG terminal located in Vũng Tàu district in South Vietnam.
The $500 million Cai Mep LNG terminal, which is being developed by Vietnam’s Hai Linh Company Limited, has a capacity of 3 million metric tons per annum (mtpa) expandable to 6 mtpa. It is one of only two existing LNG terminals in the country.
The terminal has pipeline connectivity to Vietnam’s largest power generation complex, the Phu My industrial zone, with a gas-fired capacity of 3.9 gigawatts (GW). It is expected to start operating in the third quarter.
The terminal is strategically located near the Mekong River Delta and has three onshore tanks totaling to a capacity of 220,000 cubic meters of LNG storage, and LNG break-bulk capabilities that allow it to reload LNG into smaller vessels, AG&P said in a recent news release.
With a total of 14 bays for compressed natural gas (CNG) and LNG truck-loading, the Cai Mep LNG Terminal is well-connected via multiple highways to several nearby demand centers to provide reliable access to LNG, according to the release.
“Cai Mep LNG Terminal will play a pivotal role in enhancing [the] energy security of Vietnam, paving the way for energy transition in 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”.
“[The] AG&P LNG team has already worked closely with the Cai Mep LNG Terminal team to operationalize the terminal by Q3 2024. We are privileged to work with Hai Linh and make LNG available quickly and safely to the Vietnam market”, Sathyamoorthy added.
“Rapid industrialization and strong economic growth currently being experienced by Vietnam are expected to generate strong gas demand growth led by [the] power and industrial sectors, combined with the balanced LNG supply market”, Hai Linh CEO Le Van Tam, said. “We are very excited to welcome AG&P LNG as our shareholder in our Cai Mep LNG Terminal Company. 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.”
“Following our recent acquisition of [a] majority stake in AG&P LNG, we are very excited to invest in Vietnam’s flagship 3 MTPA Cai Mep LNG Import Terminal”, Sam Abdalla, Nebula Energy CEO and AG&P LNG Vice Chairman, said. “This investment will enable us to commercialize LNG supply, transportation, and delivery of LNG molecules through our integrated LNG ecosystem. Once operationalized, the Cai Mep terminal will serve multiple power plants and industries in the region to meet the country’s surging demand for reliable and clean energy”.
Earlier in the year, Florida-based investment and asset management firm Nebula Energy LLC bought a majority stake in Singapore-based AG&P LNG in a move to increase its footprint in the LNG space. AG&P LNG has a substantial growth pipeline with six LNG terminals in development with proposed capacity of 25 mtpa across several international growth projects.
AG&P LNG describes itself as a global leader in developing and running LNG and gas logistics and distribution solutions. AG&P provides the infrastructure to access natural gas safely and easily in new and growing markets. The company accelerates the adoption of downstream LNG infrastructure and logistics networks, bridging the gap between infrastructure/logistics and demand with its advanced proprietary LNG technology and singular leading LNG credentials to develop, own and operate LNG assets in fast-growing markets.
