Delta Offshore Energy is building momentum in Vietnam with its proposed LNG-to-power project by awarding a front-end engineering and design contract to US services giant Bechtel.

Delta is the owner of the 3.2 gigawatt Bac Lieu LNG-to-power project which will comprise a offshore regasification platform, located 35 kilometres offshore; a subsea gas pipeline; and a planned power plant in Bac Lieu province, southern Vietnam.

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Bechtel said it has been awarded a FEED contract for the 3.2 GW combined cycle gas turbine power plant, which is 250 kilometres south of Ho Chi Minh City.

The plant consists of four single shaft units of H class gas turbine technology and will form the energy backbone of the Mekong Delta region, earmarked as a focus area for major economic development, said Bechtel.

“This power plant is a game changer for the Bac Lieu province,” said Scott Osborne, Bechtel’s general manager, infrastructure, Asia Pacific. “We want to make a difference in supporting Mekong Delta and Vietnam by creating jobs and training, working with local businesses, and providing new opportunities for those in the region. We are proud to be a part of Vietnam’s future, contributing to its energy security, trade, and economy.”

Bechtel added it looks forward to a smooth transition into the EPC execution of the project.

Delta has previously hired McDermott to perform FEED for the subsea pipeline, and said FEED is also in progress for the offshore receiving terminal.

In addition, Delta is negotiating the terms of a power purchase agreement with Vietnam Electricity Authority and implementing site reparation works.

Ian Nguyen, one of Delta’s co-founder and managing director’s, said: “Bac Lieu is ready for development, and the authorities there have shown their willingness to adopt progressive technologies. We saw this when they chose to install the region’s first offshore wind farm. With our LNG-to-power project, it will shine as the gateway for change in the Mekong Delta.”