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- Liquefied Natural Gas and Delta Offshore Energy will supply gas to the Vietnamese province of Bac Lieu under a new agreement
- Delta is set to build and operate an LNG-to-power project in the province
- LNG Ltd will supply liquified natural gas to the project for 20 years, starting at 2 million tonnes per year
- Liquified Natural Gas’ share price is up 20.41 per cent today, currently sitting at $0.30 apiece
ASX-listed Liquefied Natural Gas and Delta Offshore Energy will supply gas to the Vietnamese province of Bac Lieu under a new agreement.
Liquified Natural Gas will supply two million tonnes of the gas it is named after (LNG) each year through its wholly owned subsidiary, Magnolia.
Delta is set to construct and operate an LNG-to-power project, comprising of a 3200-megawatt combined-cycle power plant. Magnolia will supply gas to the project.
Delivering gas to the plant and generating electricity to be sold will be organised by Delta.
Under the initial terms Magnolia will supply LNG to Delta for 20 years. As it stands operations are expected to commence in 2023, following final government approvals.
“This agreement is a major achievement for the Magnolia LNG project as we progress our global commercial and marketing push toward a final investment decision,” Managing Director and CEO of LNG Greg Vesey said
Vietnam’s need for an LNG-to-power project is addressed by Delta’s Engineering Managing Director Bobby Quintos.
“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,” Bobby said.
“Our alliance with LNG Limited will allow the Government of Vietnam to have a stronger relationship with the U.S. market,” he continued.
Magnolia is based in the United States and is currently developing an eight million tonne per annum LNG export terminal in the port of Lake Charles, Louisiana.
Liquified Natural Gas’s share price is up 20.41 per cent today, currently sitting at $0.30 apiece, as of AEST 12:19 pm.
