B.Grimm, partners push Vietnam project

B.Grimm, partners push Vietnam project

B.Grimm Power has partnered with Energy Capital Vietnam (ECV) and Siemens Energy to develop an LNG-to-power project in southern Vietnam.

B.Grimm Power recently signed a joint development agreement with ECV and committed to investing US$200 million in equity in the energy project in Mui Ke Ga (MKG), Binh Thuan province.

The MKG project is expected to produce up to 3,600 megawatts of power utilising a floating storage and regasification unit. The practice provides the most economical solution for importing liquefied natural gas (LNG) and will connect via subsea pipeline to an onshore power complex, said B.Grimm Power.

The first phase of this project is slated to start operation in 2025.

As B.Grimm Power has more than 20 years of experience in Vietnam, chairman and president Harald Link said the new project would assist the country with its energy transition.

"We have great confidence in the innovative risk mitigation approach applied to the project as a cornerstone for the Vietnamese energy transition. LNG is internationally recognised as a cleaner, cost-effective fuel alternative to coal," said Mr Link.

In addition, Siemens signed a memorandum of understanding (MoU) with ECV to deliver advanced technological equipment aimed at reducing the global carbon footprint, bringing cleaner-burning gas to a coal-dominated region.

Siemens Energy is evaluating participation, with construction equity for the project having an estimated cost of $1.75 billion.

Rich Reisig, Siemens Energy senior vice-president of project development and investment, said his firm is pleased to join ECV's MKG project.

"The increasing pace of climate change is pushing us to meet these needs more sustainably, with a clear goal of achieving carbon neutrality. If gas helps us build a bridge by reducing CO2 emissions by a good two-thirds compared with coal, while guaranteeing a secure supply, then we should use that bridge," he said.

Vietnam represents an untapped market for LNG as the country shifts away from coal and hydropower for baseload supply, while experiencing annual growth in electricity consumption nearing 10%, according to ECV.

The country is also finalising its new national power development plan.

ECV signed an MoU with the People's Committee of Binh Thuan province in 2019 to develop a private, multi-phase LNG-to-power complex, receiving in-principle approval from the prime minister in 2020. It is expected to include the MKG project.

David Lewis, ECV chairman and chief executive, said the firm has prepped for Vietnam's energy transition since 2015. The new partnership will certainly enhance the strength of the MKG project and provide critical energy security to Vietnam, he said.

"Beyond world-class engineering competence and efficiency, B.Grimm and Siemens Energy take a comprehensive approach to development by leveraging global relationships," said Mr Lewis.

Do you like the content of this article?
COMMENT
TRENDING

Indian man wins 22-year court fight for 20 rupees

A lawyer who won a 22-year court battle for compensation from Indian Railways after being overcharged 20 rupees (9 baht) said on Friday that his quest for justice was worth the effort.

20:52

Global LGBT event scrapped over Taiwan name flap

TAIPEI: An international LGBT gathering in Taiwan has been cancelled after its global organisers demanded the removal of the self-ruled island’s name from the 2025 event — a move denounced by the government.

18:17

Five Chinese firms to exit US stock market

SHANGHAI: Five major Chinese companies including two of the country’s largest oil producers will delist from the New York Stock Exchange, the firms said in filings on Friday.

17:30