Delta Offshore Energy has been selected by the Bac Lieu province in Vietnam to bring the country’s 3000 MW LNG-to-power project forward.
The company has signed a memorandum of understanding with the Bac Lieu Party Chairman making DOE the exclusive right to build, own and operate the proposed project in Southern Vietnam.
The memorandum was initially awarded to the Dallas-based Energy Capital Vietnam (ECV).
DOE said in its statement it represents the interest and participation of over 10 corporations engaged in the project.
Delta Offshore Energy brought General Electric on as a strategic partner for the project, exclusive gas turbine supplier and the provider of technical support. GE will also assist in the financial structuring of the project.
Speaking of the project, DEO engineering director, Bobby Quintos noted the company partnered with Norway’s 7 Seas to develop the LNG import terminal to provide feedstock to the gas plants.
At full capacity, the project will be importing approximately $1 billion worth of LNG on an annual basis.
Delta Energy Offshore said it has already started commercial negotiations with Vietnam’s national utility company EVN for a twenty-year LNG supply contract to backstop the electricity power purchase deal.
DOE project director Spencer White added, “upon the successful issuance of the investment certificate for this project we will commence detailed engineering work and full feasibility study during early 2019.”
The first phase of the project will see an investment of $1 billion in Vietnam’s power sector with construction expected to start in 2019 with four project phases to be completed by 2026.