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US DoC includes LNG to power project in advocacy program

Released at: 10:59, 16/09/2019

US DoC includes LNG to power project in advocacy program

Photo: GIZ

Delta Offshore Energy's 3.2GW Bac Lieu project included in US Commercial Advocacy Program.

by Minh Do

Delta Offshore Energy Pte Ltd (DOEPL), a Singaporean clean energy project developer, announced on September 16 in Hanoi that the US Department of Commerce has accepted the inclusion of its 3.2GW LNG to power project in the Mekong Delta’s Bac Lieu province into the US Commercial Advocacy Program.

Together with its US strategic partners, including LNG Limited’s Magnolia LNG project, Baker Concrete Construction, Inc., and McDermott, DOEPL has been progressing the project to a Final Investment Decision (FID).

The next milestone is the official notification of the project into the national power development plan (Power Development Plan 7, revised) and will serve as an important step on the path to financial closure for the project.

“Delta Offshore Energy is pleased to be able to assemble, for our Bac Lieu province project, a consortium of blue-chip companies that are leaders in the Power and LNG industry,” said Mr. Bobby Quintos, Engineering Managing Director. “This consortium, through their recent acceptance in the US Department of Commerce Advocacy Program, shows their commitment as a group to ensuring the success of the project.”

The US is an emerging leader in the LNG supply globally. Multiple liquefaction plants in the US Gulf Coast reaching FID combined with various gas pipelines to cheap shale basins such as the Permian coming online enable Made-in-USA LNG to offer cost competitive and stable energy security to Vietnam.

“We look forward to supplying LNG to Vietnam and the Delta Offshore Energy project and appreciate the support being provided by the US Department of Commerce,” said Mr. Greg Vesey, Managing Director and CEO of LNG Limited.

This project will support improved US-Vietnam trade relations with up to $30 billion in US export content over the proposed project life of more than 25 years. In particular, the LNG supply, equipment, and various services from US strategic partners will help balance Vietnam’s trade surplus with the US.

DOEPL signed a Memorandum of Understanding in July 2018 with the Bac Lieu Provincial People’s Committee for the development and operation of an integrated 3.2GW onshore power plant and supporting facilities, including a floating LNG receiving, storage, and regasification terminal and pipeline.

Vietnam is the second-largest power generation market in Southeast Asia and its energy demand will continue to grow, underpinned by immense industrialization and urbanization. It can benefit from the flexible power generation of combined cycle gas turbines and innovative offshore LNG terminal solutions from 7Seas LNG & Power AS to support its renewable energy ambitions. Vietnam can also benefit from the success of the US private sector investment model to attract global capital in energy infrastructure.

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