Master Teaming Agreement between Delta Offshore Energy, Bechtel Corporation, General Electric, and McDermott will bring more than $3 billion of U.S. equipment and service for the development of the Bac Lieu LNG-to-power project in Bac Lieu province.
The four parties signed the agreement this morning in the opening ceremony of the Indo Pacific BizForum in Hanoi. The Delta Offshore Energy Bac Lieu LNG-to-power project will bring 3,200 MW of power to Bac Lieu Province, and Vietnam, to help address the growing clean, reliable and competitive energy needs of the country and its rapidly growing economy.
The project’s 3200MW of power capacity can generate over 20 TWh of electricity annually and will have regasification capacity of up to 6MTPA.
The total project concession will be up to $50 billion over 25 years and is expected to import up to 3 MTPA of LNG. This is the first private sector owned and operated LNG-to-power project approved in the national master power development plan as a 100% Foreign Direct Investment under Vietnam’s Law on Investment.
The purpose of the signing is to utilize $3 billion of equipment and engineering services from Bechtel, General Electric, and McDermott, utilizing the best-in-class American technology and engineering from the United States.
The project is led by Delta Offshore Energy, with cooperation from Bechtel, General Electric and McDermott, also appointed industry-leading American firms as advisors including JP Morgan as project finance Mandated Lead Arranger, Hogan Lovells as international counsel, Black & Veatch as technical advisor, Marsh as insurance and risk advisor.
It is of national importance with public support by Vietnam’s top leaders to ensure energy security for the socio-economic development of Bac Lieu Province, a top shrimp exporting province, as well as the rest of the Mekong Delta of Southern Vietnam, the nation’s bread basket which currently faces a power shortage of up to 20% according to Vietnam’s Ministry of Industry and Trade.
The Project is a flagship model for US-Vietnam bilateral relations on trade, investment and energy security and represents a new dawn for private sector-initiated investments in energy infrastructure in Vietnam.
Featured image: Deputy Prime Minister and Foreign Minister Pham Binh Minh and US Ambassador Kritenbrink shake hands during the opening ceremony of the Indo Pacific BizForum in Hanoi. Photos US Consulate in HCMC
By My Huyen