Korea Gas Corporation (KOGAS) and Energy Capital Vietnam (ECV) have entered into a Memorandum of Understanding (MOU) that provides the framework for the development of a privately-funded LNG regasification terminal, storage, gas supply system and 3,200 MW gas-fired power project near Mui Ke Ga, Binh Thuan province, Vietnam.
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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.
Commenting on the MOU, 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.
“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 US dollar and inflation has remained below 5% and unemployment below 2.5% for the past five years. In 2018 inflation was under 3.5%and GDP was over 7%.”
The US 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.
