Home / Economy / Industry
Singapore-based firm seeks long-term contract for LNG supply in Vietnam
Linh Pham 09:52, 2020/09/11
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.

TAG: Singapore based Delta Offshore Energy LNG power bidding Bac Lieu
Other news
15:01, 2020/01/20
PM approves issuance of aviation license to Vietravel Airlines
Given the prime ministerial decision, Vietnam would have a sixth operational airline.
07:53, 2020/53/20
Vietnam, Japan to boost cooperation in innovation
The Japanese business community has high expectation that Vietnam would manufacture high-added value products.
14:27, 2020/27/19
US$3.7 billion deals announced in Suga’s Vietnam visit
The deals cover fields ranging from digital economy, environment to energy and infrastructure.
01:42, 2020/42/17
Startups in ASEAN help promote inclusive and sustainable development: UNDP
Young entrepreneurs will play a key role in the post Covid-19 socio-economic recovery journey, even accelerating it in the Southeast Asian region, stated a senior UNDP official.
08:21, 2020/21/13
Vietnam should add internal combustion engine power plants from 2022: Study
A study proposes developing a mechanism for reserve capacity payments for flexible power plants, and developing an ancillary services market for the Vietnam grid.
09:57, 2020/57/10
JICA-funded solar power project helps Vietnam advance low-carbon growth goal
The project is the first of its kind in the Asia-Pacific to be certified by the Climate Bonds Initiative.