The private terminal sent regasified LNG through the new Cai Mep-Phu My gas pipeline to support Vietnam’s power generation.
The Cai Mep LNG terminal began supplying regasified liquefied natural gas to the Phu My energy complex, Vietnam’s largest gas-fired power generation center, with a capacity of nearly 4 GW.
The fuel flows through the new Cai Mep-Phu My gas pipeline to the Phu My 2.1 and Phu My 2.1E power plants, operated by EVNGENCO3, a subsidiary of the state-owned Vietnam Electricity Company.
With this shipment, Cai Mep LNG becomes the first private terminal in the country to deliver regasified LNG directly to the Phu My energy complex.
The Cai Mep-Phu My gas pipeline begins operations
Firstly, the supply confirms the commissioning of the gas pipeline and the distribution station that connect the terminal with the power generation center.
The deliveries are part of a gas sales agreement between Cai Mep LNG and EVNGENCO3; during this stage, the fuel will be used in reliability testing and validation of the integrated infrastructure.
Furthermore, the dispatch is coordinated with the National System and Market Operator of Vietnam, the objective being to verify the joint operation of the terminal, the transmission network and the generation units before starting long-term commercial operations.
The connection allows the incorporation of imported LNG into power plants that depend on a stable gas supply; this alternative is gaining importance given the growth in electricity demand and the need to diversify the country’s fuel sources.
AG&P LNG controls the Cai Mep terminal
Singapore-based AG&P LNG owns Cai Mep LNG, a company belonging to Nebula Energy, a US company dedicated to investment and development of energy infrastructure.
In April, AG&P LNG increased its stake in the facility to 100%; the company had initially acquired 49% of the terminal from the Vietnamese company Hai Linh.
Cai Mep LNG already has the infrastructure to serve industrial customers through bulk distribution and truck loading. The new connection to Phu My expands its role within Vietnam’s LNG-to-electricity supply chain.
The terminal is located in the province of Ba Ria-Vung Tau, one of the main industrial and energy zones in the south of the country.
Cai Mep LNG’s capacity could double
Currently, the terminal has an import capacity of 3 million tons of LNG per year, and its owners plan to increase it to 6 million tons per year as demand increases.
The facility has three onshore tanks with a combined capacity of approximately 220,000 cubic meters, it also has areas for loading LNG and compressed natural gas for the industrial market.
On the other hand, Cai Mep is one of the two LNG import terminals operating in Vietnam, the other being Thi Vai, managed by PetroVietnam Gas in the same province.
Thi Vai supplies the Nhon Trach 3 and Nhon Trach 4 power plants, designed to use LNG as fuel, the commissioning of both terminals demonstrates the progress of Vietnam’s gas infrastructure.
LNG strengthens the electricity supply in southern Vietnam
The start of deliveries to Phu My allows for the expansion of available fuel sources for one of the country’s most important power plants.
At the same time, the integration of terminals, pipelines and power plants offers a way to reduce exposure to disruptions in the regional gas supply.
Vietnam is seeking to respond to increased electricity consumption with new power plants and energy networks; in this scenario, Cai Mep LNG can assume a relevant role by connecting LNG imports with electricity generation and with industrial consumers in the south of the country.
The current phase will serve to verify the reliability of the system; after completing the tests, Cai Mep LNG and EVNGENCO3 will be able to move towards a stable commercial supply scheme.
Source and photo: Pgjonline
