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Sep 11, 2020 / 09:52

Singapore-based firm seeks long-term contract for LNG supply in Vietnam

Vietnam sets an ambitious plan to develop LNG-to-power projects to make this a major energy source for the country.

Singapore-headquartered Delta Offshore Energy (DeltaOE) has submitted a request for proposal (RFP), the first one of its kind for Vietnam, for a 25-year gas sales agreement.

 Delta Offshore Energy seeks for 25-year LNG supply for power project in Vietnam. Image: AP

It’s aimed to seek suppliers of liquefied natural gas (LNG) for the company’s 3,200-MW power project in Vietnam.

The supply of estimated 2.5 to 3 million tons per annum (mtpa) of LNG will be priced on either a delivered ex-ship (DES) basis or free-on-board (FOB) basis for bidding that will be closed by September 27, the company has said.

The cargoes will be delivered to the Offshore LNG regasification facility in Vietnam’s southern province of Bac Lieu which is located the company’s power project.

The power project, that has been approved by the government of Vietnam with the inclusion in the national Power Development Plan 7 and the issuance of the Investment Registration Certificate in January 2020, is scheduled to start in 2021 with completion in 2024.

With an investment of US$4 billion, it will be the first large-scale LNG project in Vietnam to be developed by a foreign investor.

Engineering Managing Director for DeltaOE Bobby Quintos said “Delta Offshore Energy’s Bac Lieu project addresses Vietnam’s need for an LNG import terminal to provide access to growing the LNG industry as a feedstock for electricity generation.”

Delta Offshore Energy focuses on developing clean energy solutions as the future for meeting the power generation needs of emerging economies. It originates structures and co-develops clean energy projects with a particular focus on the rapidly evolving power sector in Vietnam.

Vietnam plans to build its first power plants connected to new LNG import terminals from 2021 to 2025, its trade minister said on Monday.

It’s an ambitious move that could make LNG a major energy source for the country, according to Reuters.

The Institute of Energy of Vietnam is drafting a new master power development plan and has compiled a list of 22 LNG power plants with a combined capacity of up to 108.5 gigawatts (GW), the first of which will become operational by 2023.

That would be nearly double the country's total installed generation capacity of 56 GW, and more than twice Thailand’s capacity of about 46 GW, Reuters reported.