Delta Offshore Energy has awarded Bechtel a contract to provide front-end engineering design (FEED) services for a new 3.2GW-a-year power plant in Bac Lieu province, in Vietnam’s Mekong Delta, some 250km south of Ho Chi Minh City.

Powered by liquified natural gas (LNG), the plant will be the country’s first privately-owned power station and will be capable of providing electricity to 32 million homes, kickstarting the region’s industrialisation, says Delta.

The Bac Lieu Province People’s Council approved a land requirement of 70 hectares at the end of March this year for the plant, which consists of four single shaft units of H class gas turbine technology.

Bechtel said it will form the “energy backbone of the Mekong Delta region”, which has been earmarked for intense economic development.

“This power plant is a game changer for the Bac Lieu province,” said Scott Osborne, Bechtel’s general manager for infrastructure in the Asia Pacific region. “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.”

Factories, bridges, schools and hospitals are being built in Bac Lieu as it develops into an industrial hub.

“Bac Lieu is ready for development, and the authorities there have shown their willingness to adopt progressive technologies,” said Ian Nguyen, co-founder and managing director of Delta Offshore Energy. “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.”

In parallel with the FEED process for the plant, Delta is conducting FEED for the offshore LNG-receiving terminal, and negotiating the terms of a power purchase agreement with Vietnam Electricity Authority.

Delta Offshore Energy is a Singapore-registered energy company with offices in Singapore, Hanoi and Houston. Its Bac Lieu LNG-to-power project was included in Vietnam’s national Power Development Plan 7.