Due to Vietnam’s growing demand for electricity, foreign investors are lining up to develop LNG projects in the country.

Korea Gas Corporation (KOGAS) has entered into a Memorandum of Understanding (MoU) with Energy Capital Vietnam (ECV) that provides the framework for the development of LNG re-gasification terminal, storage, and gas supply system in the country.  The project also includes a3,200 MW gas-fired power plant in Mui Ke Ga, Binh Thuan Province.

According to David Lewis, CEO of ECV, his company’s position as one of the first LNG movers in Vietnam and Korea Gas’expertise in the LNG sector will provide a platform to reduce the cost of LNG in the country and fulfill its energy needs.

Interests among foreign investors in Vietnam’s LNG sector is at an all-time high with the likes of Tokyo Gas and Marubeni Corporationshowinga keen interest in forging ties with domestic entities for potential opportunities in the LNG sector.

The US Trade and Development Agency has also offered its support to help improve the country’s energy security status by providing smart technology and developing the LNG power industry.

LNG consumption in the country is expected to grow by 10 percent every year for a decade.

Earlier this month, Vietnam’s state-owned Petrolimex has also entered into a memorandum of understanding (MoU) with Japanese petroleum and metals conglomerate JXTG to study liquefied natural gas developments in the country. Petrolimex is currently planning a liquefied natural gas import terminal in the coastal province of Khanh Hoa.

In a bid to move away from its reliability on coal, the country’s government earlier this year announced its plan to invest $7.8 billion in gas-fired power plants. The government plans to build four gas-fired plants, with a total capacity of about 6,000 megawatts, as well as LNG import facilities.