Bac Lieu province proposes solutions for problems facing $4 bln LNG-to-power project

Bac Lieu has proposed power purchase and transmission solutions towards removing bottlenecks in the $4 billion, 3,200 MW LNG-to-power project hosted by the Mekong Delta province.

The project, invested in by American firm Delta Offshore Energy (DOE), was granted an investment certificate in 2020, but has yet to commence construction.

Major problems include a power purchase agreement that has not been finalized after several negotiation rounds and government guarantees for the project, Bac Lieu Chairman Pham Van Thieu said during a working session with National Assembly Vice Chairman Nguyen Duc Hai on Tuesday.

One solution is to approve the 500-kV power line project connecting Bac Lieu province with Thot Not district in Can Tho city, also in the Mekong Delta, in order to ensure the power plant is connected to the national grid once it becomes operational in 2027, Thieu said.

Another solution is to make sure that state utility Vietnam Electricity (EVN) will purchase power from the project so that the investor can have some income for debt repayment, he added.

Hai responded that the National Assembly delegation would analyze the proposals and recommend that the government and relevant authorities issue suitable policies that will ensure energy utilization and security.

During the working session, Hai paid inspection visits to several wind power plants to assess renewable energy development in the province.

As of end June, the province had 10 wind power plants with a total capacity of 660.2 MW. Of these, eight with a capacity of 469.2 MW are operational and have so far generated 3.35 billion kWh.

The Mekong Delta province is also home to 1,615 rooftop solar systems with a total capacity of 184 MW and an annual output of 553 million kWh.

Delta Offshore Energy (DOE) has said it plans to complete work on the $4 billion, 3,200MW Bac Lieu LNG-to-power plant in 2029. In a July meeting with Bac Lieu authorities, a DOE representative said they aim to put the first 800-MW turbine into operation in June 2028. Bac Lieu Chairman Pham Van Thieu responded that the province would resolve problems within its jurisdiction and asked the firm to contact ministries, central agencies and the Prime Minister to fix issues beyond the province’s purview.

DOE aims to reach a power purchase agreement (PPA) with EVN for the power plant in the fourth quarter of this year. “We appreciate the government of Vietnam for the approval of PDP8, as it provides a clear path to the completion of the grid interconnection, which is critical for DOE and EVN to reach agreement on tariffs and schedule of the PPA,” Ian Nguyen, managing director of the U.S company, said in a release last May.