Vietnam's Cai Mep LNG Starts Gas Deliveries to Vietnam's Largest Power Complex

Vietnam's Cai Mep LNG terminal has reached a major milestone by beginning gas deliveries to the country's largest gas-fired power complex, marking another step in expanding the nation's LNG infrastructure.

(Reuters) — Vietnam's Cai Mep import terminal, owned by Atlantic, Gulf and Pacific LNG (AG&P LNG), has begun supplying regasified liquefied natural gas to the country's largest gas-fired power generation complex, the company said in a statement on July 17.

Singapore-based AG&P LNG, a unit of U.S. investment and development firm Nebula Energy, said regassified LNG is now flowing through its wholly owned pipeline to the 900-megawatt Phu My 2.1 and 2.1E power plants, which are operated by a subsidiary of state utility Vietnam Electricity Corporation (EVN).

"The milestone establishes Cai Mep LNG as Vietnam's first private terminal to deliver regasified LNG into the Phu My power complex," said AG&P LNG.

The deliveries are being made under a gas sale agreement between Cai Mep LNG and the EVN subsidiary, known as Power Generation Corporation 3, it added.

"The first gas send-out marks the completion of commissioning of the new Cai Mep-Phu My gas pipeline and gas distribution station, connecting the terminal to... the 4 gigawatt Phu My hub."

Cai Mep, one of Vietnam's two operational LNG terminals, is located in Ba Ria-Vung Tau province in the south and has a capacity of 3 million metric tons per year.

The terminal started operations in the third quarter of last year, and is connected by pipeline to the Phu My industrial zone. AG&P LNG increased its stake in the terminal to 100% in April.

Vietnam's other operational LNG import facility is the Thi Vai terminal by PetroVietnam Gas, also located in the Ba Ria Vung Tau province. It supplies fuel to the Nhon Trach 3 and 4 power plants, the country's first units to run exclusively on LNG, which began commercial operations in December.