AG&P LNG buys into fully constructed Vietnamese LNG terminal

AG&P LNG, a subsidiary of Nebula Energy and developer of LNG terminals and downstream infrastructure, has purchased a 49% stake in Cai Mep LNG terminal located in Vũng Tàu district in South Vietnam.

Fully constructed, the terminal was developed by Hai Linh Company, a petroleum product import terminal and trader in Vietnam.

The Cai Mep LNG terminal is connected by pipeline to Vietnam’s largest power generation complex, the Phy My industrial zone, with a gas-fired capacity of 3.9 GW.

It is strategically located near the Mekong River Delta and features three onshore tanks totaling a capacity of 220,000 cubic meters of LNG storage and LNG break-bulk capabilities for reloading LNG into smaller vessels.

Karthik Sathyamoorthy, CEO of AG&P LNG, commented on the acquisition: “Cai Mep LNG Terminal will play a pivotal role in enhancing energy security of Vietnam, paving the way for energy transition in Vietnam. Strategically located, Cai Mep LNG will enable reliable LNG access to multiple power plants in its vicinity, including Hai Linh’s Hiep Phuoc Power Plant – currently under construction – and to the industries in the South Vietnam region.

“AG&P LNG team has already worked closely with the Cai Mep LNG Terminal team to operationalize the terminal by Q3 2024. We are privileged to work with Hai Linh and make LNG available quickly and safely to the Vietnam market.”

Le Van Tam, CEO of Hai Linh Company Limited, said: “Rapid industrialization and strong economic growth currently being experienced by Vietnam are expected to generate strong gas demand growth led by power and industrial sectors, combined with the balanced LNG supply market. We are very excited to welcome AG&P LNG as our shareholder in our Cai Mep LNG Terminal Company. With this partnership, we will be able to expedite the terminal’s start up and commissioning and LNG terminal operations into Vietnam and serve the exponentially growing LNG demand in our country.”

Sam Abdalla, CEO of Nebula Energy, and Vice Chairman of AG&P LNG, added: “Following our recent acquisition of majority stake in AG&P LNG, we are very excited to invest in Vietnam’s flagship 3 MTPA Cai Mep LNG Import Terminal. This investment will enable us to commercialize LNG supply, transportation, and delivery of LNG molecules through our integrated LNG ecosystem. Once operationalized, the Cai Mep terminal will serve multiple power plants and industries in the region to meet the country’s surging demand for reliable and clean energy.”