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McDermott lands FEED job for gas pipeline in Vietnam

U.S. engineering and construction services provider McDermott has been awarded a contract by Delta Offshore Energy to provide front-end engineering design (FEED) services for a subsea gas pipeline in Vietnam.

Delta Offshore is currently developing an integrated LNG-to-power project of 3200MW to Bac Lieu Province, Vietnam.

The Vietnamese government included the entire 3,200 MW Bac Lieu project into the National Power Development plan for 2011-2020 back in December 2019.

The concession will be under a 25-year Power Purchase Agreement (PPA) with Electricity Vietnam (EVN) to deliver clean power to the national grid, in particular in the South where Power is less developed relative to Central and North Vietnam.

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McDermott explained in a statement on Wednesday that the pipeline will connect a regasification platform, located approximately 22 miles (35 kilometres) offshore, to the planned power plant in Bac Lieu.

The company added it has also been awarded the pre-engineering geotechnical and geophysical survey services being carried out as a part of the FEED scope.

McDermott’s Houston office is leading engineering services—supported by its Kuala Lumpur office.

The engineering company will perform project management, execution planning, and estimation services and installation studies will be performed by its marine operations.

Bac Lieu project map; Source: Delta Offshore

“This award illustrates the confidence Delta Offshore Energy and its partners have in McDermott’s ability to deliver a turn-key EPCI solution for the subsea gas pipeline FEED scope for its Sisyphus project”, said Mark Coscio, Senior Vice President for North, Central and South America.

Three months prior to the award, McDermott started a project feasibility study for the project, which was converted into the FEED.

McDermott anticipates the FEED contract will be converted into an EPCI contract in the first quarter of 2021.

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