A liquefied natural gas export terminal Australia-based LNG Limited is developing in Lake Charles has landed an agreement for a power project planned in the Mekong Delta of southern Vietnam.
In a statement issued Sunday evening, LNG Limited announced that its proposed Magnolia LNG export terminal in Louisiana has inked a 20-year supply deal to an electric power project being developed by Singapore-based Delta Offshore Energy in Vietnam’s Bac Lieu province.
The contract with Delta Offshore Energy and the government of Bac Lieu province will be for 2 million metric tons of LNG annually for 20 years.
Magnolia LNG has yet to be built, but the company holds a federal permit to construct a plant at the site that will produce 8 million metric tons of LNG per year. LNG Limited is seeking permission to boost that production by another 800,000 metric tons per year.
“This agreement is a major achievement for the Magnolia LNG project as we progress our global commercial and marketing push toward a final investment decision,” LNG Limited CEO Greg Vesey said in a statement.
According to the approved by the Vietnamese government, Delta Offshore Energy will be building a natural gas power plant in Bac Lieu province as well as an offshore LNG import terminal known in the industry as a floating storage regasification unit.
Tankers from Magnolia LNG will arrive at the planned offshore LNG import terminal, where the supercooled liquid fuel will be converted back into its gas form and fed into an underwater pipeline that will move the natural gas to the onshore power plant.
“Delta Offshore Energy’s Bac Lieu project addresses Vietnam’s need for an LNG import terminal to provide access to growing the LNG industry as a feedstock for electricity generation,” Delta Offshore Energy’s engineering managing director Bobby Quintos said in a statement. “Our alliance with LNG Limited will allow the Government of Vietnam to have a stronger relationship with the U.S. market and the long-term stability of the Henry Hub Index, which fits perfectly with the Vietnamese National Power Development Plan.”
LNG Limited is headquartered in Australia but is moving its global headquarters to Houston.