The government of Vietnam has approved inclusion of a proposed 3,200-megawatt liquefied natural gas-fired power plant as part of the country’s national power plan, Kallanish Energy reports.
Singapore-based Delta Offshore Energy said it will, along with its partners, begin a full-scale feasibility study of the Vietnam project that includes an offshore LNG import facility and an onshore power plant.
The move by Prime Minister Nguyen Xuan Phuc is good news for Australia-based Liquefied Natural Gas Ltd.
The approval clears the path for Delta Offshore Energy to negotiate and finalize a 25-year power purchase agreement with Electricity Vietnam to underpin the project in Vietnam’s Bac Lieu Province, and also empowers Delta and Liquefied Natural Gas to finalize a binding sale and purchase agreement for 2 million tonnes per year of LNG from the U.S.
Last October, the Australia-based company announced a deal to supply LNG to a proposed power plant in the Mekong Delta in southern Vietnam. Earlier plans called for the plant to be coal-fired. That project is being developed by Singapore-based Delta Offshore and Bac Lieu Province.
That plant would use 2 million tonnes of LNG per year for 20 years, or roughly 25% of the capacity of a Louisiana LNG facility, Magnolia LNG, being developed by the Australian company. A final investment decision and start of construction on the Louisiana LNG project are dependent on sufficient offtake agreements to support financing, it said.
Liquefied Natural Gas Ltd. is also developing LNG facilities in Nova Scotia in eastern Canada.
