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    DOE to advance Vietnam gas-power project following approval of PDP8


Singapore-based Delta Offshore Energy (DOE) is developing the 3.2 GW Bac Lieu gas-to-power project in Vietnam.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Security of Supply, Gas to Power, Corporate, News By Country, Vietnam

DOE to advance Vietnam gas-power project following approval of PDP8

The recent approval of Vietnam's Power Development Plan 8 (PDP8) has provided a clear path for Delta Offshore Energy (DOE) and state-owned Electricity Vietnam (EVN) to finalise the power purchase agreement (PPA) for the 3.2 GW Bac Lieu gas-to-power project, DOE said on May 24.

DOE been in negotiations with EVN since the end of 2020, addressing key legal and commercial provisions, including the fuel cost pass through based on long-term LNG supply terms.

The Bac Lieu gas-to-power project was approved under Power Development Plan 7 (Revised) in 2019. DOE received an investment registration certificate in early 2020, designating it as the exclusive investor in the project. To implement the project, DOE established Bac Lieu LNG Power Co. (BLLP) in the second quarter of 2021.

Bechtel was awarded a contract to provide front end engineering design (Feed) services for the project. DOE awarded a contract to US engineering firm McDermott International for the Feed of a 35-km pipeline to carry gas from the LNG terminal to the plant. Stena Power & LNG Solutions will also license its transfer and regasification technology for the terminal.

The grid interconnection plan for the project, as approved under PDP8, allows the project to connect to the existing 500kV national grid backbone, which is linked to the power load system of Ho Chi Minh City. This interconnection will enable the project to supply power for economic development in the region and support the integration of wind and solar renewable energy projects in Bac Lieu province and the Mekong Delta.

Additionally, the 130 km 500kV Bac Lieu - Thot Not transmission line has been approved as a national government and EVN project. DOE has obtained funding from the United States Trade & Development Agency (USTDA) to conduct an international feasibility study for the transmission line. The study, prepared by Black & Veatch, complies with international financing standards and is supported by the Vietnamese Institute of Energy to meet local requirements. Once the study is finalised, the transmission line can proceed to financing and construction.

DOE said it conducted a successful long-term LNG supply tender between late 2020 and 2021, receiving nearly thirty bids from leading LNG suppliers.