AG&P LNG acquires 49% stake in Vietnam's Cai Mep LNG terminal

(Reuters) - Singapore-based Atlantic, Gulf and Pacific LNG, a unit of U.S. investment and development firm Nebula Energy, has acquired a 49% stake in Vietnam's Cai Mep LNG terminal, it said in a statement on Thursday.

Developed by Vietnamese petroleum trader Hai Linh Company and valued at $500 million, the Cai Mep terminal is located in the southern Ba Ria Vung Tau province and has a capacity of 3 million metric tons per annum.

"We are targeting around September for starting the terminal by supplying LNG by trucks to industrial customers in South Vietnam," said AG&P LNG CEO Karthik Sathyamoorthy, adding that industrial customers included steel and textile manufacturers.

This would make it Vietnam's second LNG terminal to begin operations, following the Thi Vai LNG terminal by PetroVietnam Gas, also located in the Ba Ria Vung Tau province.

The Cai Mep terminal is currently undergoing pre-commissioning works and should see the import of its commissioning cargo two to three months before first gas in September, Sathyamoorthy said.

Apart from supplying LNG by truck, the terminal has break bulk capabilities to allow LNG to be reloaded into smaller vessels for transport.

The terminal is also connected by pipeline to the Phu My industrial zone and will eventually supply Hai Linh's under-construction Hiep Phuoc power plant, the AG&P statement said.

The power plant is expected to start sending out power around September to October 2025, said Sathyamoorthy.

Additionally, AG&P LNG has formed a joint venture entity with Hai Linh, called Vietfirst LNG Trading, to trade and import LNG. The entity is expected to receive its import license within the next six weeks.

Vietnam imported its first LNG cargo in July to commission the one million tons per annum Thi Vai LNG Terminal, which will primarily supply two gas-fired power plants with a combined capacity of 1.5 gigawatts being built in the neighboring province of Dong Nai.

PetroVietnam Gas, a unit of state-owned PetroVietnam, had said in a statement last week it would launch its tank truck LNG business from March 15 to supply the fuel to industrial customers, and aims to increase the terminal's capacity to 3 million tons per annum by 2026.

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