The plant is expected to be fully operational by 2024.
Vietnam-based clean energy project developer Delta Offshore Energy (DOE) signed a power purchase agreement (PPA) with the Vietnamese government for the 3.2 GW Bac Lieu LNG-to-power (LNG2P) project on 29 December 2020, according to an announcement made on 21 January 2021.
The LNG2P project, the first 100% privately funded major project in the country, will be built in the Mekong Delta Province of Bac Lieu. It will feature a “power generation facility with an LNG receiving terminal, a regasification plant, a pipeline, and all associated infrastructure on- and offshore,” according to the announcement.
“The PPA is a 25-year contract under which Vietnam will purchase electricity from Bac Lieu, with a lifetime value of approximately $50b,” it added.
By end of 2020, the project had reportedly reached more than 95% of its milestones to completion. It’s expected to be fully operational by 2024.
Whilst the LNG2P project has been progressing slowly, it has seen many accomplishments in 2020, including reaching the semi-final stage of the suppliers’ bidding for 25 years’ worth of liquefied natural gas, reaching the final stage of the picking of design, and storage of the LNG floating storage unit, having the front-end engineering design of the plant’s pipeline completed, amongst others.
“The Bac Lieu LNG-to-Power plant will enable the clean industrialisation of Bac Lieu province, which in turn will help the government eradicate poverty and elevate the lives of the people of the region,” said Ian Nguyen, managing director of DOE. “All stakeholders are aligned and committed to the goal of delivering reliable and affordable clean energy to Vietnam.”
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