Delta Offshore Energy gains support for Bac Lieu LNG project PPA completion
Published by Will Owen,
On 1 August, in a national meeting hosted by Vietnam’s Prime Minister, Nguyen Xuan Phuc, Standing Deputy Prime Minister, Truong Hoa Binh, along with other distinguished Government Ministers and Provincial Leaders of the Mekong Delta, the Managing Director of Delta Offshore Energy (DOE), Ian Nguyen, secured Government support to start negotiations for PPA completion for the 3.2GW Bac Lieu LNG-to-Power project with Vietnam Electricity (EVN). DOE was the only foreign participant invited to the government meeting with senior officials.
In follow-up to a meeting in Bac Lieu Province earlier this year with the National Steering Committee delegation led by H.E. Hoang Quoc Vuong, Vice Minister of the Ministry of Industry and Trade, DOE has the greenlight to begin early negotiations of key terms in the PPA and will submit its Heads of Terms PPA this month.
Positioned as the ‘made in USA LNG-to-power’ project in ASEAN, this ambitious and country-transforming initiative is the single largest Foreign Direct Investment project for the Mekong Delta region, the agriculture and aquaculture ‘rice basket’ of Vietnam. The potential US content when including LNG is up to US$30 billion over 25 years.
Advocated by the US Government, this project has gained significant American interest. US Secretary of Energy, Dan Brouilette, recently expressed US Government support for the Project, to Deputy Prime Minister H.E. Pham Binh Minh, in a letter dated 13 July 2020.
The project will be brought to fruition by a world-class consortium led by DOE and top American LNG and power infrastructure companies. These consortium members include General Electric (GE) and Bechtel. McDermott International and Stena AB are leading the offshore engineering.
DOE has contracted the Institute of Energy, Vietnam’s leading energy technical advisor under the Ministry of Industry and Trade, to complete the grid interconnection report, feasibility study, and the environmental impact assessment, as prerequisites for key approvals and agreements with the Vietnam government. DOE has also hired expert international consultants to help complete the feasibility study by September 2020.
Nguyen also reassured the Prime Minister and all other notable attendees that the development phase is on schedule so that the implementation can commence in 2021. Power is fully expected to upload to the national grid by 2024, as mandated in the PDP7.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/06082020/delta-offshore-energy-gains-support-for-bac-lieu-lng-project-ppa-completion/
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