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Master Teaming Agreement between Delta Offshore Energy, Bechtel Corporation, General Electric, and McDermott for the development of the Bac Lieu LNG-to-power project for more than $3 billion of U.S. equipment and services.

United States Companies and Vietnam Partners Sign Cooperation Agreements in Energy Sector
The signing ceremony today - Photo: Diep Nguyen
Today, the Indo – Pacific Business Forum was organized in Hanoi. In this forum, many cooperation agreements have been signed. This is symbolic for the warming trade and economic cooperation between United States and Vietnam. 
Master Teaming Agreement between Delta Offshore Energy, Bechtel Corporation, General Electric, and McDermott for the development of the Bac Lieu LNG-to-power project for more than $3 billion of U.S. equipment and services.
The project name is Bac Lieu LNG-to-power project. The Delta Offshore Energy Bac Lieu LNG-to-power project will bring 3,200 MW of power to Bac Lieu Province, and Vietnam, to help address the growing clean, reliable and competitive energy needs of the country and its rapidly growing economy. The purpose of the signing is to utilize $3 billion of equipment and engineering services from Bechtel, General Electric, and McDermott, utilizing the best-in-class American technology and engineering from the United States.
Following are the key highlights of the project: 
• The project’s 3200MW of power capacity can generate over 20 TWh of electricity annually and will have regasification capacity of up to 6MTPA.
• The total project concession will be up to $50 billion over 25 years and is expected to import up to 3 MTPA of LNG. The project is the first private sector owned and operated LNG-to-power project approved in the national master power development plan as a 100% Foreign Direct Investment under Vietnam’s Law on Investment.
• The project is led by Delta Offshore Energy, with cooperation from Bechtel, General Electric and McDermott. The project has also appointed industry-leading American firms as advisors including JP Morgan as project finance Mandated Lead Arranger, Hogan Lovells as international counsel, Black & Veatch as technical advisor, Marsh as insurance and risk advisor.
• The project is of national importance with public support by Vietnam’s top leaders to ensure energy security for the socio-economic development of Bac Lieu Province, a top shrimp exporting province, as well as the rest of the Mekong Delta of Southern Vietnam, the nation’s bread basket which currently faces a power shortage of up to 20% according to Vietnam’s Ministry of Industry and Trade.
• The Project is a flagship model for US-Vietnam bilateral relations on trade, investment and energy security and represents a new dawn for private sector-initiated investments in energy infrastructure in Vietnam.

DIEP NGUYEN