US-based Energy Capital Vietnam is joining forces with Thailand’s B.Grimm Power and a unit of German engineering giant Siemens to develop its LNG-to-power project in Mui Ke Ga, Binh Thuan province, in southern Vietnam.
In that regard, ECV has signed a joint development agreement with B.Grimm Power, a unit of B.Grimm, under which the latter intends to invest about $200 million in equity at financial close of the MKG LNG project, according to a statement by ECV.
B.Grimm Power’s more than 20 years presence in Vietnam and expertise in operating gas fired power plants with a total capacity of more than 2,000 MW would ensure a “smooth project implementation as well as reliable and efficient electricity production,” ECV said.
In addition, Siemens Energy would deliver “advanced technology equipment into the project to reduce the global carbon footprint by bringing cleaner burning gas to a still coal-dominated region,” it said.
Further, Siemens Energy is evaluating to participate with construction equity to the project, which has an estimated total project cost of $1.75 billion.
ECV is also forming a joint venture with trader Gunvor to supply LNG on a long-term basis to the FSRU-based project. The two firms revealed this deal last year saying the project would consume about 1.5 mtpa of LNG.
Besides these three partners, ECV also selected Deutsche Bank as the debt structuring bank and Maius to provide risk mitigation and financing solutions.