Recent developments in Vietnam’s Liquefied Natural Gas (LNG) infrastructure sector have captured the attention of numerous foreign investors, particularly those from the United States. These investors are optimistic about the growth potential of Vietnam’s energy demand and aim to meet this increasing need through investments in LNG infrastructure.

Latest Progress on the Cai Mep LNG Terminal

Currently, Vietnam’s Cai Mep LNG terminal is actively seeking cargo for commissioning tests. If successful, this terminal is poised to become Vietnam’s second operational LNG receiving facility. Notably, AG&P LNG, a subsidiary of Nebula Energy, recently announced the acquisition of a 49% stake in the Cai Mep LNG terminal, further propelling the project’s development.

U.S. Companies Actively Engaging in Vietnam’s LNG Projects

In June 2024, U.S.-based Excelerate Energy signed a term sheet with Vietnam’s ITECO Joint Stock Company to jointly develop a new LNG import terminal in Haiphong, Vietnam. Ramon Wangdi, Excelerate’s Vice President for Asia Pacific, stated that Vietnam, as one of Asia’s fastest-growing economies, remains an attractive emerging market for foreign investors.

Mr. Wangdi emphasized that LNG will play a crucial role in meeting the growing global demand for natural gas. He noted that as Vietnam strives to transition from traditional energy sources like coal and oil-fired power generation to renewables such as solar and hydropower, LNG will be instrumental in helping Vietnam achieve its net-zero emissions target by 2050.

Investment Climate and Opportunities

Adam Sitkoff, CEO of the American Chamber of Commerce in Hanoi (AmCham Hanoi), stated that U.S. companies, as global leaders in the energy sector, have shown keen interest in Vietnam’s LNG infrastructure. However, he pointed out that to transform this interest into actual investments, Vietnam needs to demonstrate to international investors its capability to deploy large-scale infrastructure according to international banking standards. Sitkoff emphasized the critical importance of LNG terminals and all buyers committing to secure international financing as planned.

Vietnam’s LNG Industry Outlook

Anh Nguyen, Head of Market Research and Consulting at FiinGroup, a financial analysis and credit rating firm, stated that LNG will become a promising industry for Vietnam in the coming years. He mentioned that the Power Development Plan VIII will focus on promoting the transformation and upgrading of traditional energy industries such as coal and hydropower while reducing their proportion in power generation. The plan aims to achieve a share of over 14.9% for LNG renewable gas thermal power in Vietnam’s total national power system capacity.

Role of Foreign Investors

The FiinGroup representative added that experienced foreign investors have shown great interest in Vietnam’s LNG market. Several renowned international companies, including ExxonMobil, Siemens Energy, General Electric, and Millennium Energy, plan to deploy projects in this sector. These foreign investors, with their extensive experience in LNG development and strong financial capabilities, are expected to make significant contributions to Vietnam’s domestic power plants.

Conclusion

• Vietnam’s LNG infrastructure sector has attracted substantial foreign investment, particularly from U.S. companies.
• The progress of the Cai Mep LNG terminal and Excelerate Energy’s involvement signify the rapid development of Vietnam’s LNG industry.
• Vietnam needs to further improve its investment environment to attract more international investments.
• The Power Development Plan VIII provides a clear direction for the development of Vietnam’s LNG industry.
• The participation of foreign investors will bring advanced technology and rich experience to Vietnam’s LNG industry, driving its rapid development.

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