South Korean public natural gas company Korea Gas Corporation (Kogas) and Vietnam-focused development and asset management company Energy Capital Vietnam (ECV) have entered into a memorandum of understanding (MOU) for the development of a privately-funded LNG regasification terminal in Vietnam.
The MOU also covers the development of a storage facility, gas supply system, and a 3,200 MW gas-fired power project near Mui Ke Ga, Binh Thuan Province, Vietnam, said a press note.
The MOU contemplates KOGAS and ECV working together to optimize their efforts to meet the significant LNG demand growth forecasted for Vietnam. The scope of the MOU covers matters relating to cooperation and collaboration for the Project.
David Lewis, CEO of ECV, said KOGAS' strong presence in the LNG business together with ECV's position as one of the first LNG movers in Vietnam, allows both companies to leverage each other's strengths to bring low-cost LNG to Vietnam and help address critical energy security needs.
"This significant milestone culminates a year-long effort with KOGAS," said Lewis. "We share similar strategic visions and ECV is proud to have a company as prestigious as KOGAS join a project of this importance. They have been steadfastly dedicated and reliable the entire time and we look forward to our long-term partnership together."
Meanwhile, ECV has awarded KBR a contract to provide feasibility services and refine cost estimates for the Project including detailed analysis of optimal design combinations. Completion of the study is expected to be achieved in the third quarter of 2019.