Novatek mulling LNG supplies to Vietnam, starting at 1 mln tonnes per year

MOSCOW. March 26 (Interfax) - Novatek is in talks to supply liquefied natural gas to private companies in Vietnam, starting at 1 million tonnes per year, company CEO Leonid Mikhelson told reporters.

He said electricity consumption in Vietnam was growing significantly, primarily from gas. Russia has signed an agreement with PetroVietnam. "We raised the issue of working not only with state-owned companies but also with private ones - this was also reflected in the protocol," Mikhelson said.

"We are currently discussing supplies to companies that are completing the construction of private [regasification] terminals," he said.

Asked about volumes, he said: "For starters we're looking at a million, 1 million tonnes."

Vietnamese Prime Minister Pham Minh Chinh visited the Novatek office while in Moscow last week. Novatek is interested in exporting LNG to Vietnam and has recently signed a preliminary supply agreement, having been negotiating with potential buyers for the last five years, Mikhelson said at the time.

"The company is also interested in investing in infrastructure projects. Expertise in moving transport to LNG - we are also glad to share this expertise and assist in the development of LNG retail network projects on the Vietnamese market," he said.