HANOI, VN. – DELTA OFFSHORE ENERGY as a project owner signed a Master Teaming Agreement between Bechtel Corporation, General Electric, and McDermott Inc. for the development of the Bac Lieu LNG-to-power project worth more than $3 Billion of U.S. equipment and services.
U.S. Secretary of Commerce Wilbur Ross said on Thursday.
“The Trump administration hopes to find new commercial opportunities for U.S. Businesses. Examples of such partnership opportunities is the Delta Offshore Energy, Bac Lieu Power Project. The Delta Offshore Energy Project will provide Vietnam with an additional 3,200 Mega Watts of Power and it will utilize over 3 Billion Dollars U.S. equipment and services plus future U.S. LNG supply”.U.S. Secretary of Commerce Wilbur Ross
Summary: The Delta Offshore Energy (DOE) Bac Lieu LNG-to-power project sponsors will bring 3,200 MW of power to Bac Lieu Province, and Vietnam, to help address the growing clean, reliable and competitive energy needs of the country and its rapidly growing economy. The purpose of the signing is to utilize $3 billion of equipment and engineering services from Bechtel, General Electric, and McDermott, utilizing the best-in-class American technology and engineering from the United States.
The project’s 3200 MW of power capacity can generate over 20 TWh of electricity annually and will have a regasification capacity of up to 6 MTPA. The Bac Lieu LNG-to-Power project is a Pioneer in Vietnam as the first coal-to-gas conversion, the first fully integrated IPP including LNG supply, and the first approved LNG receiving, storage, and regasification solution that is floating.
The total project concession will be more than $50 billion over 25 years and is expected to import up to 3 MTPA of LNG. The project is the first private-sector owned and operated LNG-to-power project approved in the national master power development plan as a 100% Foreign Direct Investment under Vietnam’s Law on Investment.
The project is led by Delta Offshore Energy, with cooperation from Bechtel, General Electric, and McDermott. Front End Engineering Design (FEED) and Pre-FEED studies are currently being completed by these companies. DOE is also now evaluating LNG gas sales agreement bid proposals from 24 companies to support the 25 year Power Purchase Agreement (PPA) with Electricity Vietnam (EVN). The project has also retained industry-leading American firms as advisors including JP Morgan as project finance Mandated Lead Arranger, Hogan Lovells as international counsel, Black & Veatch as technical advisor, Marsh JLT as insurance and risk advisor, and ERM as the ESIAH consultants.
The project is of national importance with public support from Vietnam’s top leaders to ensure energy security for the socio-economic development of Bac Lieu Province, a top shrimp exporting province, as well as the rest of the Mekong Delta of Southern Vietnam, the nation’s breadbasket which currently faces a power shortage of up to 20% according to Vietnam’s Ministry of Industry and Trade. The Commercial Operations Date (COD) for the project is expected in the beginning of 2024.
The Project is a flagship model for US-Vietnam bilateral relations on trade, investment, and energy security and represents a new dawn for private sector-initiated investments in energy infrastructure in Vietnam.