Organized by the Provincial People’s Committee of Bac Lieu (BLPC), Delta Offshore Energy (DOE) and strategic partners of the world-class consortium was held both in person and virtually. This Memorandum of Understanding (MoU) signing event included support from the United States Consul General, Marie C. Damour, in Ho Chi Minh City. Marie Damour. “Additionally, it is an example of the US public and private sector commitment to invest and be a strong partner for Vietnam’s growing energy infrastructure needs. “
On behalf of Bechtel, “the province of Bac Lieu and Delta Offshore Energy have created a flagship project for Vietnam and its population: to create future jobs in Bac Lieu, train its workers in new skills and offer opportunities to local businesses” said Scott Osborne, senior vice president and general manager, Bechtel Infrastructure. “We are proud to support the advancement of the project with Bac Lieu and Delta Offshore Energy, and to be part of Vietnam’s future, contributing to its energy security, trade, employment and economy. Bechtel is the onshore firm selected to carry out the engineering studies.
McDermott International, the selected offshore engineering company, was represented via video conference by Mr. Ian Prescott Senior Vice President, Asia Pacific. Other consortium partners include GE Power providing the latest 9HA.02 combined cycle gas turbine technology, Stena AB providing the jettyless floating LNG terminal solution, JP Morgan as debt structuring agent and Mandated Lead Arrange for the financing of the project, Black and Veatch as technical advisor, Marsh JLT as risk and insurance advisor, Howe Robinson Partners as LNG shipping advisor as well as Hogan Lovells, Gide Loyrette Nouel and the company local ACSV as legal advisers for the project.
Delta Offshore Energy, as the development company and main sponsor, has aligned a strong “A” team of these world-class companies in their LNG-to-power value chain to ensure the on-time delivery of the project which attended. the signing event.
Representatives of the Ministry of Industry and Trade (MOIT), Electricity Vietnam (EVN), National Power Transmission Corporation and Southern Power Corporation attended the signing of the Memorandum of Understanding between the People’s Committee of Bac Lieu Province and DOE’s strategic partners.
The successful implementation of the project investment showcases Vietnam’s improved business environment to attract international investment in the energy sector. The main objective of the MoU is to allow the start of the implementation of the project within 12 months in accordance with the Investment Policy Decision (IPD) and the Investment Registration Certificate (IRC) issued. in January 2020 by the authorities of the province of Bac Lieu. The transparent and straightforward development process under Vietnam’s investment law will be successful once the PPA is signed in December, less than a year after the issuance of the IRC
The development of the project is on track to reach a world record pace in the sector despite the complexity of an integrated LNG-to-electricity project in the context of a pandemic environment. The DOE has submitted virtually all the deliverables requested by the Prime Minister, namely: (1) the network interconnection study report submitted to the Ministry of Industry and Trade (MOIT) in July (2) the feasibility study submitted in September and (3) environmental study The impact assessment will be submitted to the Ministry of Natural Resources and Environment in October.
“On behalf of the strategic partners of the world-class consortium of Bac Lieu Province, the DOE is honored to be a part of this special investment project and thanks Prime Minister HE Nguyen Xuan Phuc, the Vietnamese government administration and the Committee People of Bac Lieu Province for their continued support. More specifically, we thank the authorities for providing this unique opportunity to pilot the first thermal energy IPP project under the new investment law. We remain committed to the project schedule in accordance with IRC and PDP7. We are very optimistic about the future with this great opportunity for the country and I speak on behalf of our consortium that we are all looking forward to working closely together to achieve financial close to begin construction immediately next year ” , said Ian Nguyen.
Formal negotiations with EVN for the 25-year Power Purchase Agreement (PPA) will begin immediately after this event. Several Upstream Engineering and Design studies (FEED) will be completed by the end of 2020, allowing the start of construction in 2021 and the first block of the plant’s commercial operation date in 2024 as stipulated by the revised PDP7 .
Simultaneously to support the PPA, the DOE launched a Request for Proposals (RFP) for long-term LNG supply in early September 2020. Bobby Quintos, Managing Director of Delta Offshore Energy in the United States.
Delta Offshore Energy also selected ERM Group Inc. for Environmental, Social, Health and Impact Assessment (“ESHIA”) to support. In addition, a call for tenders for the legal advisor to lenders and the technical advisor to lenders is already underway with leading companies.
The consortium is confident that taking into account the experienced negotiating team of EVN and the professional consultants of the investment consortium, the PPA will be finalized and signed by the end of 2020, subject to acceptance and approvals. MOIT and other relevant authorities on policies aimed at improving the bankability of the project and enabling the project to access competitive international funding.
About Delta Offshore Energy
Delta Offshore Energy is focused on developing clean energy solutions to meet the power generation needs of emerging economies. We are structuring and co-developing clean energy projects with a focus on the rapidly evolving energy sector in Vietnam. We cover the entire spectrum from LNG up to electricity, wind and solar.
For more information or to view the event in video, visit deltaoe.com.
(Photos courtesy: Media V News Vietnam)