Trading giant Gunvor has entered into a joint venture with Energy Capital Vietnam to develop an LNG-to-power project in Vietnam.
US-based ECV leads a consortium developing the FSRU-based project in Mui Ke Ga, Binh Thuan Province, in Southeast Vietnam.
Under the new partnership, ECV and Gunvor will form a JV responsible for trading and shipping. In addition, Gunvor will supply LNG to the venture on a long-term basis.
Gunvor’s trading portfolio consists of a significant portion of US-based projects, which will “ensure a fuel supply to the project and the province as a whole.”
The introduction of LNG to the region will initiate a much-needed energy transition and will help cut emissions, the duo said.
The fully private, multi-phase power project will connect via subsea pipeline to an FSRU to import LNG.
The first phase of the project is targeting final investment decision in late 2021 and commercial operational delivery by 2025.
Furthermore, the project will consume about 1.5 mtpa of LNG. Also, there will be room to increase consumption to reflect subsequent development phases and opportunities presented by market conditions.