LNG Ltd. (LNGL), Perth, and Singapore’s Delta Offshore Energy Pte. Ltd. have made an alliance with Vietnam’s Bac Lieu provincial government to establish an LNG-to-power project for the province.
The development includes construction and operation of an LNG import terminal, a 3,200-Mw combined-cycle power plant, and delivery of power generation to the Bac Lieu province.
The plan is to bring the integrated project into operation in 2023 pending finalization of government approvals.
LNGL said the deal included the delivery of 2 million tonnes/year of LNG to Delta from LNGL’s proposed 8 million-tpy Magnolia LNG project export terminal in the Port of Lake Charles, La.
LNGL has made a supply and purchase agreement with Delta on a fob basis for a 20-year term with options to extend. Delta will, in turn, deliver gas to the power plant in Vietnam, generate electricity, and sell its output to the province under a power purchase agreement.
LNGL said specific terms and conditions for both agreements have been negotiated in term sheet form and the contracting parties are now completing the two contracts for execution.
Greg Vesey, the company’s managing director and chief executive officer, said the agreement represents a major achievement for the Mongolia LNG project as LNGL moves forward with its global commercial and marketing push towards a final investment decision.
The Magnolia LNG project proposes construction and operation of as many as four LNG trains, each with a capacity of 2.2 million tpy, using the company’s patented OSMR LNG process technology.
The Magnolia LNG project is fully permitted and a final investment decision hinges on execution of sufficient offtake agreements to support financing.
