Oil trader Gunvor enters deal to supply LNG to Vietnam

(Reuters) - Oil trading giant Gunvor International said on Tuesday it would enter an alliance to trade and ship liquefied natural gas (LNG) to Vietnam, as part of a joint venture with U.S.-based development company Energy Capital Vietnam (ECV).

Gunvor will supply the super chilled fuel to an ECV-led project in Vietnam's Binh Thuan Province, where it will be converted to power. The companies expect initial LNG consumption to amount to about 1.5 million tons per year, they said in a statement here.

The multi-phase power project will connect via a subsea pipeline to an offshore floating storage and regasification unit to import LNG.

The final investment decision on the project’s first phase is targeted to be in late 2021, with commercial operational delivery expected by 2025.

Reporting by Aaron Saldanha in Bengaluru; Editing by Amy Caren Daniel