PetroVietnam Gas in LNG supply talks with ExxonMobil and Novatek

PetroVietnam Gas, a unit of state-owned PetroVietnam, has held talks with US energy giant ExxonMobil and Russian LNG producer Novatek, as it looks to secure liquefied natural gas supplies for its new Thi Vai LNG import terminal.

According to a statement by PetroVietnam Gas, the firm welcomed delegations from ExxonMobil and Novatek during two separate meetings at its headquarters on Wednesday.

PetroVietnam expects to receive the commissioning cargo from Shell at its 1 mtpa Thi Vai LNG import terminal, Vietnam’s first such facility, on July 10.

The firm said that boosting trade and investment ties with global energy leaders such as ExxonMobil and Novatek is pivotal for the development of PetroVietnam Gas and for the country’s gas industry.

During the meeting with the ExxonMobil delegation, the two sides discussed the possibility of LNG supplies for the commercial operation of the Thi Vai LNG terminal, PetroVietnam Gas said.

According to the firm, they also discussed opportunities to cooperate in upstream oil and gas projects.

As per the meeting with Novatek’s representatives, the Russian firm has shown interest to supply PetroVietnam Gas with LNG during 2023-2026.

In addition, the two companies discussed options for cooperation and investment in LNG-to-power projects in Vietnam, PetroVietnam Gas said.

Novatek announced in 2021 that it established a representative office in Vietnam as part of its plans to supply LNG to the country.

The Thi Vai LNG terminal will have a capacity of 1 mtpa in its first phase, but PetroVietanam Gas plans to boost the capacity to 3-6 mtpa in the next stage.

The facility be an important link in supplying gas to consumers, including the Nhon Trach 3 and 4 power plants.

Together with the Son My LNG import terminal with a total expected capacity of up to 10 million tons of LNG per year, in which PetroVietnam Gas is the co-owner with the majority capital contribution ratio, these facilities will basically meet the energy demand for the southern region in the country the future, PetroVietnam Gas previously said.

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