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, further deepening Louisiana’s international industry connections.
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.
This story originally ran in 10/12 Industry Report. To keep up with happenings in Louisiana industry subscribe to the free, weekly 10/12 Industry Weekly e-newsletter here.
