US Firm Joins LNG Terminal Project in Vietnam

U.S. based liquefied natural gas (LNG) importer Excelerate Energy has announced a significant step in its expansion strategy by signing a term sheet with ITECO Joint Stock Company, a prominent Vietnamese private development firm, to co-develop a greenfield LNG import terminal in Haiphong, Vietnam. This project, named the Northern Vietnam LNG Terminal (NVLT), is set to have a total import capacity of 1.2 million tonnes per annum (mtpa) and will be developed in two distinct phases. The initial phase, planned to launch operations in 2027, will focus on achieving a capacity of 0.7 mtpa. The full realization of the project is contingent upon the successful execution of definitive agreements, obtaining the necessary regulatory approvals, and meeting other stipulated conditions.

The NVLT is envisioned as a key infrastructure development aimed at bolstering the energy capabilities of northern Vietnam. This strategic initiative is designed to address the region's growing energy requirements and support its economic development. ITECO, which had previously signed a share purchase agreement with JAPEX in late 2021, had hoped to reach a final investment decision (FID) by the latter half of 2022 to advance the project. The initial phase of development for the terminal will include the construction of a 50,000 cubic meter (cbm) LNG storage tank, which is expected to handle up to 650,000 metric tonnes of LNG annually, along with necessary jetty facilities to facilitate the operation. Furthermore, an additional 30,000-cbm storage tank is planned to be constructed in the latter part of the decade to support the terminal's expansion.

In a related development, Excelerate Energy's floating storage regasification unit (FSRU), known as the Excelsior, is slated to service Germany's Wilhelmshaven 2 LNG terminal. The Excelsior, with a storage capacity of 138,000 cubic meters, is anticipated to be moored at a new island jetty in Jade Bay, located in northwestern Germany, by late 2024. Once operational, this FSRU will play a crucial role in the regasification process, converting LNG into its gaseous state before it is delivered to shore. The vaporized natural gas from the Excelsior will be transported ashore via ECOnnect Energy’s advanced IQuay F-Class System and subsequently integrated into the Open Grid Europe (OGE) gas grid.

The collaboration between Excelerate Energy and ITECO marks a significant development in the expansion of global LNG infrastructure. By establishing the NVLT in Vietnam, both companies aim to enhance the energy supply chain in a key regional market, contributing to the broader efforts of meeting the rising energy demands and supporting cleaner energy solutions. Simultaneously, Excelerate Energy’s commitment to servicing Germany’s LNG terminal underscores its strategic focus on leveraging its technological capabilities to support energy infrastructure in critical markets worldwide. These projects highlight the ongoing global efforts to develop robust and efficient energy solutions that cater to the evolving needs of both emerging and established markets.