Vietnam, Alaska Sign Letter of Intent

PV Gas, a unit of Vietnamese state-owned Petrovietnam, signed a letter of intent (LoI) with Alaska Gasline Development Corporation (AGDC) for supply of LNG from the Alaska LNG project to Vietnam, PV Gas said October 30. A high-level Vietnamese delegation was on a visit to Alaska from October 18-24.

Last November the two parties had signed a memorandum of understanding (MoU) setting forth the basic principles to collaborate on potential opportunities of LNG supply from AGDC to serve LNG import projects in Vietnam and to evaluate the possibility of upstream resource investment in Alaska. During the visit, the two parties exchanged updated information on the content of cooperation under the MoU, PV Gas said.

Alaska LNG is a 20mn metric tons/year integrated LNG system consisting of a three-train liquefaction facility at Nikiski, on the Kenai peninsula in southcentral Alaska; a gas treatment plant on Alaska’s North Slope; an 800-mile, 42-inch gas pipeline connecting the treatment plant to the liquefaction facilities; and various gathering facilities to connect Prudhoe Bay gas reserves to the gas treatment plant. The Alaskan LNG project is estimated to cost $43bn and is likely to be completed and commissioned by 2024.

Vietnam’s first LNG import terminal is expected to be ready by late-2020. LNG Vietnam, established in 2016, is undertaking the project. PV Gas holds 51% stake in LNG Vietnam, Bitexco owns 39% and Tokyo Gas 10%.