PV Gas Signs Agreements with U.S. Energy Majors for LNG Cooperation

PV Gas, a subsidiary of Vietnam Oil and Gas Group (Petrovietnam), has recently inked deals with two prominent Texas-based energy companies, Excelerate Energy and ConocoPhillips, to collaborate on procuring liquefied natural gas (LNG) from the United States.

During a productive visit to the U.S., PV Gas finalized cooperation agreements with Excelerate Energy and ConocoPhillips. The signing ceremony was graced by Vietnam’s Minister of Industry and Trade, Nguyen Hong Dien, and Vietnamese Ambassador to the United States, Nguyen Quoc Dung, alongside company representatives.

The focus of discussions with the American partners centered on enhancing long-term LNG supply to support the execution of Vietnam’s Power Master Plan VIII. Both parties agreed on essential LNG cooperation principles to address the escalating electricity production demand in Vietnam amidst declining domestic resources.

While specific details of the deal with ConocoPhillips remain undisclosed, Excelerate Energy revealed the signing of a memorandum of understanding (MoU) with PV Gas, aiming to establish a secure and consistent supply of LNG from the U.S. as early as 2026.

As part of the agreement, the partners will assess PV Gas’ LNG supply needs and outline a collaborative strategic framework for LNG procurement tailored to meet Vietnam’s energy requirements.

“We are delighted to collaborate with PV Gas on this significant venture,” expressed Oliver Simpson, Executive Vice President and Chief Commercial Officer of Excelerate. “This partnership underscores our dedication to assisting Vietnam in fulfilling its escalating energy demands while also creating a downstream market for U.S. LNG supply. Together, we anticipate contributing to a sustainable and secure energy future for Vietnam.”

PV Gas anticipates that these import agreements will facilitate the implementation of Vietnam’s LNG import strategy, projected to hit 9 million tonnes per annum (mtpa) by 2030, and escalating to 15 mtpa by 2035, with an estimated total value of $7.2 billion.

In line with its commitment to bolster energy security in the nation, PV Gas disclosed plans to integrate a floating storage and regasification unit (FSRU) into its Thi Vai LNG terminal.

Recently, Excelerate hosted a keel-laying ceremony for an FSRU, Hull 3407. With the commencement of hull construction, the U.S. entity foresees the vessel’s readiness for deployment by June this year.