HANOI. Delta Offshore Energy (DOE) is pleased to confirm that the National Government of Vietnam has approved the Power Development Plan 8 (PDP8) on 15 May 2023 for the 2021 – 2030 period with vision to 2050. DOE is the developer of the integrated 3200MW LNG-to-Power Project in Bac Lieu Province, Vietnam (Project) approved under Power Development Plan 7 (Revised) in late 2019. DOE was issued an Investment Registration Certificate (IRC) in early 2020 to be the exclusive investor in the Project and setup the Vietnamese enterprise to implement the Project, Bac Lieu LNG Power Co., Ltd (BLLP) in the 2nd quarter of 2021. The Project completed the Seaport Master Plan and Environmental Impact Assessment approval in 3rd quarter 2021 as well as the Feasibility Study appraisal in the 4th quarter 2021.
PDP8 includes the approval of the Grid Interconnection plan for the Project to connect to the existing 500kV national grid backbone linked to the power load system of Ho Chi Minh City. This will allow the Project to supply power to foster economic development in the region as well as support more efficient use of the existing and proposed wind and solar renewable energy projects in Bac Lieu Province and the Mekong Delta.
The 500kV 130km Bac Lieu – Thot Not Transmission Line now approved in PDP8 will be a project of the national government and Electricity Vietnam (EVN). To support and accelerate the process, DOE was able to obtain funding from the United States Trade & Development Agency (USTDA) of the United States Department of Commerce (DOC) to fund an international feasibility study of that Transmission Line. That international feasibility study is being finalized now and has been prepared by Black & Veatch to comply with international financing standards and supported by the Vietnamese Institute of Energy to comply with local requirements. With this international feasibility study complete, the Transmission Line can proceed to financing and construction.
“We appreciate the government of Vietnam for the approval of PDP8, as it provides a clear path to the completion of the grid interconnection which is critical for DOE and EVN to complete agreement on the tariff and schedule of the PPA. We target completion of the PPA in 4th Quarter of 2023 in order to break ground in 2024”, said Mr. Ian Nguyen, Managing Director of DOE.
The Power Purchase Agreement (PPA) has been in negotiations since the end of 2020 based on the drad PPA Form submitted by DOE to EVN. The key legal and commercial provisions of the PPA have been addressed including the Fuel Cost Pass Through based on long-term LNG supply terms.
“DOE undertook a long term LNG supply tender in late 2020-2021 achieving tremendous success having received nearly thirty bids from LNG leading suppliers. This transparent procurement process provides a strong model to ensure “best pricing” on the Fuel Cost Pass Through to EVN and ultimately Vietnam. Long-term LNG contracts mitigate volatility in fuel pricing while ensuing security of supply to maintain reliable power generation to address Vietnam’s fast growing power demand.”, said Mr. Roberto Mayo Quintos, Managing Director of DOE.
The Project is nationally important as it addresses long-term energy security and supports the socioeconomic development of the country with affordable, reliable and clean power. As the Project is the first integrated LNG-to-power project approved in the national power development plan, it continues to be at the forefront on addressing key issues with policy makers to finalize the PPA and enable the implementation of the Project.
“The approval of PDP8 is positive for all stakeholders in the energy sector. We thank EVN and its affiliated companies for their ongoing support of the Project and the grid interconnection while we have been negotiating the PPA for this Nationally Important Project. We also thank the local authorities in Bac Lieu Province for their strong support of the Project and help to coordinate with the national government on the successful implementation of this Project.”, said Mr. Do Ba Canh, General Director of BLLP.
About Delta Offshore Energy
Delta Offshore Energy (“DOE”) is focused on project origination and development in clean energy. DOE affiliate in Singapore, Delta Offshore Energy Pte Ltd (“DOEPL”), is the owner of the 3,200 MW Bac Lieu LNG-to-Power project (the “Project”) which was approved by the Prime Minister for inclusion into Vietnam’s National Power Development Plan 7 revised. The Project is the first LNG-to-Power project that is 100% private under the Investment Law scheme.
In June 2021, DOEPL established Bac Lieu LNG Power Co., Limited (BLLP) and appointed Mr. Do Ba Canh as its legal representative and General Director. BLLP is an economic enterprise to directly execute all related contracts, permits, and approvals in order to implement the Project in accordance with the laws of Vietnam.
For more information, please visit: deltaoffshoreenergy.com