- Liquefied Natural Gas (LNG) has congratulated Delta Offshore Energy on receiving the Investment Registration Certificate for its Bac Lieu Project
- The project is a 3200-megawatt LNG-to-power project in Bac Lieu, Vietnam
- This marks the final approval needed for the project to go ahead
- LNG and Delta partnered up in September last year for LNG to supply 2 million tonnes of LNG gas from its Magnolia project, to Bac Lieu
- LNG is up 2.70 per cent with shares trading at 19 cents each
Liquefied Natural Gas (LNG) has congratulated Delta Offshore Energy on receiving the Investment Registration Certificate for its 3200-megawatt LNG-to-power project.
This is a key milestone as the Investment Registration Certificate (IRC) is the final regulatory approval needed for the Bac Lieu Project to go ahead.
“Delta Offshore Energy is leading by example becoming the first registered energy infrastructure project in Vietnam to be fully supported through foreign direct investment, mainly from the United States,” LNG Executive Chairman, Managing Director and CEO Greg Vesey said.
The company has also thanked the Bac Lieu Province People’s Committee and the National Steering Committee on Vietnam’s Energy Development for their approval of the IRC.
In September 2019, Delta Offshore Energy (DeltaOE) and LNG jointly announced an alliance with the Bac Lieu Provincial Government in Vietnam to deliver the LNG-to-power project.
Under the agreement, LNG will supply two million tonnes of the gas it is named after (LNG) each year through its wholly owned subsidiary, Magnolia.
Delta is negotiating a 25-year power purchase agreement with Electricity Vietnam Group to underpin the Bac Lieu Project and is progressing a binding sale and purchase agreement (SPA) with LNG.
Once the SPA is agreed, it will remain subject to the company making a final investment decision as described in an October 2019 announcement.
“With significant end-user LNG demand, Vietnamese and Southeast Asian customers are a major priority for LNGL, and we will continue our efforts to grow our potential commercial opportunities in the region,” Greg added.
LNG is up 2.70 per cent with shares trading at 19 cents each at market close.