Vietnam has given the green light to build its first import terminal for liquefied natural gas (LNG).
Samsung C&T Corporation, a South Korean construction group that has earned a reputation for building LNG terminals, was awarded the USD179.5 million building contract by PetroVietnam Gas Corporation, a subsidiary of Vietnamese state-owned oil company PetroVietnam.
Samsung C&T has formed a consortium with another PetroVietnam subsidiary, PetroVietnam Technical Services Corporation, to compete in the tender to build Thi Vai LNG Terminal.
The South Korean group has a 61% share in the consortium.
Work on the terminal is expected to be finished in October 2022. The site is in a coastal area about 70 km southeast of Ho Chi Minh City. The project includes a 180,000 m³ LNG tank, a vaporisation transmission facility, and a berth facility.
Thi Vai LNG Terminal can regasify up to one million tonnes of LNG annually, and can receive vessels with gross tonnage of up to 85,000 tonnes.
Should a second phase go ahead, the terminal can regasify up to four million tonnes of LNG per year after 2023.
In connection with the building of Thi Vai LNG Terminal, Samsung C&T will also team with PetroVietnam Technical Services to build the LNG-fired Nhon Trach 3 and 4 power plants, with the LNG coming from the terminal. This is PetroVietnam’s strategy to alleviate anticipated shortages of natural gas.
While Vietnam has abundant coal supplies, the country is joining others in recognising the benefits of clean energy and is looking to increase the ratio of natural gas in its energy mix.
In October 2019, US power generator and distributor AES Corporation was given the go-ahead by the Vietnamese government to build the Son My LNG import terminal in Binh Thuan province. Funds will be raised for the project, which is expected to commence construction in 2021.
The Son My terminal will power a 2.2 GW combined cycle gas turbine power plant that AES will operate under a 20-year contract with the government.
With Son My, Vietnam can process up to 10 million tonnes per year by 2024.