Energy Capital Vietnam (ECV), a US-based project holding and development company, and Gunvor International BV (Gunvor), one of the world’s leading independent energy commodities trading houses by turnover, have joined hands to ship liqufied natural gas (LNG) to Vietnam.
| Gunvor will ship LNG to Vietnam for 3.6 gigawatt power project on long-term basis |
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Under the partnership, ECV and Gunvor will form a joint venture responsible for trading and shipping on behalf of ECV to the 3,600-megawatt Mui Ke Ga LNG-to-power project in Vietnam’s central province of Binh Thuan.
A consortium led by ECV, which serves as a platform for private investment into Vietnam, is developing Mui Ke Ga that costs an investment of US$4.2 billion.
The project will consume approximately 1.5 million tons per year (mtpa) of LNG, with an ability to increase consumption to reflect subsequent development phases and opportunities presented by market conditions.
In addition, Gunvor will supply LNG to the joint venture on a long-term basis.
“ECV is committed to providing Vietnam with energy security made possible through access to abundant US LNG, which will be supplied to our project in an economically efficient and sustainable manner by our JV with Gunvor,” said David Lewis, ECV Chairman and CEO.
“As the worldwide LNG market continues to mature—with increasing volumes and trading complexity—this innovative sourcing partnership will help optimize our fuel supply chain and streamline delivery logistics,” he said.
As the largest independent LNG trader in the world, Gunvor’s trading portfolio consists of a significant portion of US-based supply, which will ensure a reliable, stable, and cost-competitive fuel supply to the project and the province as a whole.
“Gunvor is pleased to partner with ECV on this LNG-to-power project in Vietnam, which will be among the country’s most strategically important LNG developments,” said Seth Thomas Pietras, Gunvor’s Corporate Affairs Director.
“The introduction of LNG to the region will initiate a much-needed energy transition and will help contribute to a significant reduction of greenhouse gas emissions. The Binh Thuan province has been seeking a cleaner and more reliable energy source for many years, and the ECV project will also create technical and economic development opportunities for the local population.”
In 2019, Gunvor delivered 16 million tons of LNG, up 45% from 2018.
Maius GmbH, a Swiss structuring and project finance advisor, advises ECV on the structuring of its debt and equity, and risk mitigation of this project.
“Maius is pleased to have been able to apply their extensive relationships in the energy sphere to facilitate this agreement between these two companies, which will lead the way for LNG usage and power generation in developing countries in line with their environmental support efforts,” said Stefan M. Rohmer, Maius GmbH CEO.
The fully private, multi-phase power project will connect via subsea pipeline to an offshore Floating Storage and Regasification Unit (FSRU) to import LNG. Phase I of the project is targeting Final Investment Decision (FID) in late 2021 and Commercial Operational Delivery (COD) by 2025.
