Siemens, B.Grimm join ECV on LNG-to-Power project in Vietnam
U.S.-based project holding company Energy Capital Vietnam (ECV) said that B.Grimm Power and Siemens Energy have joined its consortium to develop an LNG-to-power project in Vietnam.
ECV’s LNG project is developing a multi-phase gas-fired power complex and floating storage regasification unit (FSRU) terminal. The location is near Mui Ke Ga in Binh Thuan Province, southern Vietnam.
B.Grimm Power and ECV have now signed a joint development agreement on the MKG LNG project.
Specifically, B.Grimm Power wants to invest approximately $200 million in equity at the financial close of the project. The company says it will ensure a smooth project implementation as well as reliable and efficient electricity production.
On the other hand, Siemens Energy will deliver advanced technology equipment to reduce the global carbon footprint. It will achieve this by bringing cleaner-burning gas to a still coal-dominated region. Furthermore, Siemens is evaluating to participate with construction equity to the project. An estimated total project cost is $1.75 billion.
Harald Link, president of B.Grimm Power, said: “We find great confidence in the innovative risk mitigation approach applied to the project as a cornerstone for the Vietnamese energy transition. As internationally recognized, LNG is a cleaner, cost-effective fuel alternative to coal. MKG LNG can help the energy transition in Vietnam in accordance with commitments made under the Paris Accords and at COP26.”
David Lewis, ECV CEO, said the addition of B.Grimm Power and Siemens Energy as partners speaks to the strength of the MKG project in Vietnam.
ECV is forming a joint venture with Gunvor to supply LNG on a long-term basis. Deutsche Bank served as the debt structuring bank. Also, Maius is engaged on project risk mitigation and financing solutions.