Delta Offshore Energy gets license to build $4-billion power plant in Vietnam

The 3,200-Megawatts power plant which is invested by Singapore’s Delta Offshore Energy and its strategic partners including the U.S.-based GE Group, Norway’s DNB Bank will be located in the Hoa Binh district of the Bac Lieu province.

It will encompass a total area of approximately 140ha, of which 40ha will be land and the remaining 100ha will be sea surface area, according to posting from the provincial government portal. 

This will be the largest foreign direct investment project in Vietnam’s Mekong Delta region.

The gas-fired power plant is proposed to be developed in three phases, with phase one having 1GW installed capacity, which is expected to be commissioned in 2023 with a capacity of 750 MW.

The plant is expected to achieve its full capacity in 2027.

Price of power to be sold to the Vietnam Electricity is expected at around 7 US cents per kilowatt-hour as the initial commitment of the investor.

In addition to coastal wind power plants, onshore wind power plants with a total capacity of nearly 4,000 MW, the newly-approved power plant is seen as a key project in the province.

To ensure its energy security, the Government of Vietnam has been attracting foreign investors for critical energy infrastructures such as integrated LNG-to-power facilities since 2018.