Map of Vietnam’s LNG import projects. Photo: Gas Master Plan
The complex project in Vietnam includes an LNG import terminal and a 32,000-megawatt combined-cycle power plant to be located in the coastal province of Bac Lieu, where LNG Limited will supply gas and DeltaOE will generate electricity and sell it, LNG Limited has said on its website.
The integrated project is expected to commence operations in 2023 pending finalization of anticipated government approvals.
LNG Limited will deliver two million tons of LNG per year from its Magnolia project to Delta OE for a 20-year term and possible extension while DeltaOE deliver gas to the power plant, generate electricity, and sell its output to the province pursuant to a power purchase agreement (PPA).
“This agreement is a major achievement for the Magnolia LNG project as we progress our global commercial and marketing push toward a final investment decision,” Greg Vesey, managing director and chief executive officer of LNG Limited, said in a joint statement.
He added that the agreement represents a significant advancement of their long relationships with DeltaOE, the province, and Vietnamese leadership, including their earlier hosting of the province leadership and DeltaOE at the Magnolia site.
Meanwhile, Engineering Managing Director for DeltaOE Bobby Quintos said “Delta Offshore Energy’s Bac Lieu project addresses Vietnam’s need for an LNG import terminal to provide access to growing the LNG industry as a feedstock for electricity generation.”
The alliance with LNG Limited will allow the government of Vietnam to have a stronger relationship with the US market and the long-term stability of the Henry Hub Index, which fits perfectly with the Vietnamese National Power Development Plan, he noted.
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