LNG terminal developer AG&P LNG has teamed up with Singapore-based BK LNG Solution (BKLS) on a small-scale LNG initiative to transport liquefied gas to China using LNG carriers and ISO containers.
The project announced on Thursday will use AG&P LNG’s co-owned new $500m LNG terminal in Vietnam as a transshipment hub.
Large LNG carriers will bring globally sourced supplies of LNG to the Cai Mep terminal, where it will be transhipped onto smaller carriers for redistribution into China.
AG&P LNG bought a 49% stake in the $500m facility from Vietnam’s Hai Linh in March. It is scheduled to begin operating in September.
The LNG terminal has three onshore tanks with a total storage capacity of 220,000 cbm and has breakbulk capabilities to reload LNG into smaller vessels.
The two companies described the project as a “pivotal moment” in their joint efforts to advance LNG solutions in China.
“Our collaboration on small-scale LNG initiatives not only expands LNG distribution capabilities but also ensures quicker, more responsive delivery of LNG, crucial for meeting increasing demand across China,” AG&P LNG chief executive Karthik Sathyamoorthy said.
“Together, we aim to set new benchmarks in delivering reliable and sustainable LNG solutions to support China’s growing energy demands. Diversifying energy sources with LNG enhances China’s energy security and supports its economic growth.”
At the same time, the two companies announced a contract to bring BK LNG’s first spot cargo of LNG into China.
While neither company provided specific details of the spot deal, they said the LNG would be delivered to China by the end of August.
TradeWinds has approached AG&P LNG for further comment.
