3,200MW LNG Bac Lieu inches closer to starting construction thanks to FEED contract

With the FEED contract done, the Bac Lieu LNG project is moving into the construction phase

Delta Offshore Energy (DOE) and Bechtel signed a contract to provide Front End Engineering Design (FEED) services for a new 3,200MW combined cycle gas turbine (CCGT) power plant in Bac Lieu province.

The plant consists of four single shaft units of H-class gas turbine technology and will form the energy backbone of the Mekong Delta region, earmarked as a focus area for major economic development.

“This power plant is a game-changer for Bac Lieu province,” said Scott Osborne, Bechtel’s general manager, infrastructure, Asia-Pacific. “We want to make a difference in supporting the Mekong Delta and Vietnam by creating jobs and training, working with local businesses, and providing new opportunities for those in the region.”

Bac Lieu is planned to become an industrial hub in the coming years with modern factories and key infrastructure including roads, bridges, schools, and hospitals being built to enable its communities to thrive.

“Bechtel’s appointment assures Delta and Vietnam a first-class power plant that will be reliable for the next 25 years,” said Bobby Quintos, co-founder and managing director of DOE.

“Bac Lieu is ready for development, and the authorities have shown their willingness to adopt progressive technologies. We saw this when they chose to install the region’s first offshore wind farm. With our LNG-to-Power project, it will shine as the gateway for change in the Mekong Delta,” said Ian Nguyen, co-founder and managing director of DOE.

In parallel with FEED services for the CCGT, DOE is conducting FEED for the offshore receiving terminal, negotiating the terms of the Power Purchase Agreement with Vietnam Electricity Authority and implementing site reparation works. Upon successful conclusion of the FEED, Bechtel and DOE look forward to a smooth transition into the engineering, procurement, and construction (EPC) execution of the project.

DOE is a Singapore registered company focused on project origination and development in clean energy, with offices in Singapore, Hanoi, and Houston. DOE is the owner of the 3.2GW Bac Lieu LNG-to-power project, which was included in Vietnam’s revised National Power Development Plan 7.

DOE received the investment policy decision and the investment registration certificate to be the exclusive owner of the project which is the largest foreign direct investment in Vietnam in January 2020. This also includes the first coal-to-gas conversion in Vietnam, the first integrated LNG-to-power project in Vietnam, Vietnam’s first approved 100 per cent foreign independent power producer in thermal power plant as well as the country’s first floating LNG terminal.