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According to Excelerate, through this strategic alliance, Excelerate and PTSC will leverage their strengths and combined resources to deliver “affordable and reliable” energy solutions that address Vietnam’s growing energy demands while supporting the country’s transition to carbon neutrality.
Under the partnership agreement, the two companies will conduct joint feasibility studies to assess the viability of FSRU opportunities in Vietnam.
Moreover, Excelerate said the studies aim to optimize existing natural gas infrastructure and augment domestic supply with regasified LNG to help meet the growing demand for natural gas and stimulate the development of a regional gas market.
“Signing this agreement marks a significant milestone in the collaboration between Excelerate Energy and PetroVietnam Technical Services Corporation,” said Steven Kobos, president and CEO of Excelerate.
“We are committed to working together to address Vietnam’s energy challenges and contribute to the country’s sustainable development,” he said.
Excelerate investing in Vietnamese LNG market
The strategic partnership with PTSC is an “important next step” in Exclerate’s broader strategy to invest in the rapidly growing Vietnamese LNG market, the company said.
In June 2024, Excelerate signed a term sheet with ITECO, a Vietnamese-based private development company, to co-develop a greenfield LNG import terminal in Hai Phong, Vietnam.
According to Exclerate, the northern Vietnam LNG terminal (NVLT), which will be constructed in two phases, is anticipated to have a total import capacity of 1.2 million tonnes per annum.
Phase one of the terminal is expected to have a capacity of 0.7 mpta, while operations are expected to start in 2027.
Also, Excelerate would hold exclusive rights to supply LNG to the terminal and be considered for the O&M provider contract.
The US firm said it is in talks with an anchor customer for the initial 0.7 mtpa.
Excelerate said the project’s development is subject to the execution of definitive agreements, regulatory approvals, and the satisfaction of other conditions.
According to Excelerate, this would be the first terminal in northern Vietnam.
Vietnam has one of the fastest-growing economies in Asia. As domestic natural gas production declines, industrial complexes in the north provide a foundation of customers who need LNG to play a “pivotal role” in their energy mix, Excelerate said.
Vietnam currently imports LNG via the 3 mtpa Thi Vai LNG terminal, operated by PetroVietnam Gas, while the Cai Mep LNG terminal, located in Vung Tau district in South Vietnam, is expected to be launched later this year.
Large FSRU fleet
In addition to the facility in Vietnam, Excelerate is in “advanced discussions” with local utilities in Southcentral Alaska to develop an integrated LNG import terminal in the lower Cook Inlet region.
This would be an FSRU-based terminal, and Excelerate is expected to own the facility, be responsible for LNG supplies, and sell gas to local utilities.
It targets a commercial start date in 2028.
Excelerate operates ten FSRUs, one of the world’s largest fleets of such vessels, and these units are located worldwide.
Some FSRUs are located in Finland, Brazil, Dubai, Pakistan, while one FSRU will also start serving the second FSRU-based LNG import terminal in Germany’s Wilhelmshaven later this year.
In addition to these 10 FSRUs, Excelerate also ordered one 174,000-cbm FSRU at South Korea’s Hyundai Heavy Industries in 2022.
It will pay about $332 million for the vessel.
The FSRU is scheduled for delivery in June 2026.