McDermott International will provide front-end engineering design (FEED) services to Delta Offshore Energy for a subsea gas pipeline connecting an LNG regasification platform approximately 22 miles (35 km) offshore to a planned 3,200 MW power plant in Bac Lieu Province, Vietnam.
McDermott will also provide pre-engineering geotechnical and geophysical survey services being carried out as a part of the FEED scope. With support from its Kuala Lumpur office, the company will perform project management, execution planning, and estimation services, while installation studies will be performed by its marine operations.
The company began a feasibility study for the project 3 months prior to the award, which was converted into the FEED. The FEED contract is expected to be converted into an engineering, procurement, construction, and installation contract in Q1 2021.
Delta’s development of the LNG-to-power project is under a 25-year power purchase agreement with Electricity Vietnam to deliver clean power to the national grid, particularly in the south where power infrastructure is less developed.
The project is led by Delta and a consortium, including McDermott, Stena AB, Combined Cycle Gas Turbine GE, and Bechtel. Delta said in early August it was offered an accelerated timeline for approvals that will reduce the time to final investment decision in exchange for providing a fully private solution to Vietnam’s energy needs.