LNGL, DELTA OFFSHORE ENERGY AGREE ON SUPPLY DEAL TO VIETNAM

LNGL, DELTA OFFSHORE ENERGY AGREE ON SUPPLY DEAL TO VIETNAM

Delta Offshore Energy (DeltaOE) and Liquefied Natural Gas Limited (ASX:LNG) jointly announce an alliance with the Bac Lieu Provincial Government in Vietnam to deliver an LNG-to-power project for the province.

The DeltaOE led power project includes the construction and operation of an LNG import terminal, 3,200-megawatt combined-cycle power plant and delivery of power generation to the Bac Lieu Province. The integrated project is expected to commence operations in 2023 pending finalization of anticipated government approvals.

LNGL’s wholly-owned subsidiary, Magnolia LNG LLC (Magnolia), shall deliver two million tonnes per annum (2 mtpa) of liquefied natural gas (LNG) to DeltaOE pursuant to a supply and purchase agreement (SPA), on a free-on-board (FOB) basis for a 20-year term with options to extend the term. DeltaOE shall, in turn, deliver gas to the power plant, generate electricity, and sell its output to the province pursuant to a power purchase agreement (PPA). The SPA and PPA are linked on a back-to-back basis providing an integrated LNG-to-power solution for the province.

Specific terms and conditions of both the SPA and PPA, respectively, have been negotiated in term sheet form and the various contracting parties are currently completing the SPA and PPA contracts for execution. Routine conditions precedent apply in both the SPA and PPA documents and the parties shall make reasonable efforts to complete these contracts expeditiously.

Source / More : Liquefied Natural Gas Limited

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