Delta moving forward with Vietnam LNG-to-power project

Delta Offshore Energy is progressing with its planned project in Bac Lieu, Vietnam that will include an LNG terminal and a 3.2-GW power plant.

The Hanoi-based firm said in a statement on Thursday that the LNG-to-power project had reached over 95% of its milestones to completion by the end of last year.

This includes the signing of a power purchase agreement end December with the Vietnamese government. Delta claims the 25-year contract under which Vietnam would buy electricity from the Bac Lieu project has a lifetime value of about $50 billion.

In addition, the project completed several technical milestones including the launch of a request for proposals for a 25-year LNG supply deal.

Following the launch in September last year, Delta says the tender reached a semi-final stage in which nine bidders from an initial field of 29 suppliers remain.

Moreover, the firm says that only two firms remain in the game to design and build the project’s floating storage unit, a key element of the power plant’s fuel supply.

Delta signed a licence agreement last year to use Stena’s LNG receiving and regas technology for the facility located about 35 kilometers offshore.

Additionally, McDermott also won last year a contract to provide FEED services for the subsea pipeline connecting the regasification facility and the Bac Lieu power plant.

Delta said McDermott already completed the front-end engineering design.

As per the onshore power plant itself, Bechtel completed the pre-FEED study necessary to establish the engineering basis of the plant, and Black & Veatch completed their concept study of the plan, Delta said.

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