Australia-listed Liquefied Natural Gas Ltd. said on Sept. 16 it signed a deal with a province in Vietnam to supply LNG from its Louisiana-based Magnolia project.

The Vietnam project includes an LNG import terminal, and a 32,000-megawatt combined-cycle power plant in the coastal province of Bac Lieu, where the Houston-based company will supply gas and Vietnam-based Delta Offshore Energy will generate electricity and sell it.

Two million tonnes of LNG per year will be supplied from its Magnolia project, which locks in a buyer for 25% of the supply from the project.

The deal comes at a time when LNG Ltd. has been struggling to lock in sales agreements for its Magnolia project due to the U.S. trade dispute with China, which has been seen as a key potential customer for U.S. LNG projects.

"Our alliance with LNG Limited will allow the Government of Vietnam to have a stronger relationship with the U.S. market," Delta Offshore Energy Managing Director Bobby Quintos said in a joint statement.

Pending government approvals, the project is expected to begin operations in 2023.