Excelerate see Vietnam as a gateway to ASEAN's LNG market

Excelerate see Vietnam as a gateway to ASEAN's LNG market

US firm Excelerate Energy has proposed the establishment of a joint venture with a Vietnamese partner to expand the liquefied natural gas (LNG) market, aiming to transform the country into a distribution centre for the region.

During a working trip to the US, Minister of Industry and Trade Nguyen Hong Dien and the Vietnamese delegation had a meeting with the leaders of Excelerate Energy on May 20.

Excelerate, a provider of liquefied natural gas (LNG) solutions, boasts a full range of flexible regasification services, from floating storage and regasification units and infrastructure development to LNG supply.

The company has offices around the world, including Abu Dhabi, Doha, Dubai, Helsinki, London, Singapore, Rio de Janeiro, Buenos Aires and Washington, DC.

At the meeting, Minister Nguyen Hong Dien spoke of his appreciation for the agreement between Excelerate and PetroVietnam Gas Corporation (PV GAS) signed on March 3. The agreement underscores Vietnam's strategic push to diversify US imports and achieve a more equal trade balance between the two nations.

"There is ample room for Excelerate to expand investment and collaboration with Vietnam. Under the revised Power Development Plan VIII, Vietnam is prioritising the development of domestic electricity and scaled LNG imports to drive energy transition," said Dien.

Vietnam’s extensive coastline offers prime conditions for developing specialised LNG ports, positioning the country as a strategic hub for energy distribution in ASEAN and beyond.

To entice US investment, the Vietnamese government is considering lowering import taxes on LNG alongside many other attractive incentives. However, Vietnam and the US do not currently have a bilateral free trade agreement, so the competitive advantage in the LNG sector is still limited.

Peter Haas, vice president of Excelerate, proclaimed the group ready to expand investment and cooperation in Vietnam in potential LNG projects if supported by the governments of the two countries.

"Excelerate sees the potential in developing LNG power projects, as well as Vietnam's potential to become a hub for storing and distributing LNG in Southeast Asia. Since 2021, Excelerate Energy has had a representative office in Vietnam," said Haas.

"We propose three specific avenues for LNG collaboration, including investing in and developing LNG infrastructure, ensuring a stable supply of LNG, and establishing joint ventures with Vietnamese partners to expand market presence. The goal is to position Vietnam as a key LNG distribution hub in the ASEAN region," he added.

VIR