Delta Offshore seeks bids for 25-year Vietnam LNG supply deal

Delta Offshore Energy on Tuesday issued a request for proposals, first of its kind for Vietnam, for a 25-year LNG supply deal to its planned power project in Bac Lieu.

The tender is for delivery of 2.5-3 million tonnes per year on a delivered ex-ship (DES) or freight on board (FOB) basis, the firm said in a statement.

The bidding starts from September 9 with closing date on September 27, it said.

Hanoi-based Delta says Vietnamese government fully approved its 3.2 GW LNG-to-power project but it still needs to take a final investment decision.

Its previous long-term preliminary deal with US-based Magnolia LNG expired earlier this year and Delta did not extend the deadline.

Furthermore, the firm recently also signed a licence agreement to use Stena’s LNG receiving and regas technology for the facility located about 35 kilometers offshore.

Additionally, McDermott won earlier this year a contract to provide FEED services for the subsea pipeline connecting the regasification facility and the Bac Lieu power plant.

McDermott also expects to secure the EPCI contract for the pipeline in the first quarter of 2021.