(Photo courtesy of ECV)
Korea Gas Corp. and U.S.-based asset management firm Energy Capital Vietnam have agreed on the framework for eventually building a privately funded liquefied natural gas (LNG) regasification terminal, storage and gas supply system in Vietnam.
The project also would include a 3,200-MW gas-fired power plant in Mui Ke Ga, Binh Thuan Province. The memorandum of understanding between Korea Gas and ECV focuses on working together as LNG demand grows in the nation.
ECV is based in Dallas but has partners, offices and investment ties in Vietnam. CEO David Lewis noted that partner Korea Gas has a strong presence in the LNG business and, coupled with ECV, can help bring low-cost LNG to Vietnam.
“Underpinned by positive demographics, wide spread liberalization and record inflows of foreign direct investment, Vietnam has been one of the fastest growing economies in the world,” ECV’s website reads. “While GDP has doubled since 2010, the currency has been stable against the U.S. dollar and inflation has remained below 5 percent and unemployment below 2.5 percent for the past five years. In 2018 inflation was under 3.5 percent and GDP was over 7 percent.”
The U.S. is becoming a net exporter of energy over the coming years, elevated by the shale revolution in natural gas drilling. Several Gulf Coast LNG terminals will ship the fuel around the world, helping meet power generation needs in Europe and Asia, among other destinations.
A team from international law firm Akin Gump advised ECV in the MOU negotiations. The Akin Gump team was led by energy partner Gabe Procaccini in Houston.