Bac Lieu Power Project Opens 2021 Celebrating Major Milestones

The final major step in the decision-making process, the signing of a Power Purchase Agreement
(PPA) between Delta Offshore Energy (DOE) and the Vietnamese Government, began in earnest on
29 December. The PPA is a 25-year contract under which Vietnam will purchase electricity from
Bac Lieu, with a lifetime value of approximately US $50 billion.

Houston, TX, January 21, 2021 --(PR.com)-- 2020 closed on an exciting note for Vietnam’s
revolutionary Bac Lieu LNG-to-Power (LNG2P) project. The first 100-percent privately funded major
project in Vietnam, it will create a 3.2-GW power generation facility with an LNG receiving terminal, a
regasification plant, a pipeline, and all associated infrastructure on and offshore, which will be built in the
Mekong Delta province of Bac Lieu. By the end of 2020, the project had reached over 95% of its
milestones to completion.

The final major step in the decision-making process, the signing of a Power Purchase Agreement (PPA)
between Delta Offshore Energy (DOE) and the Vietnamese Government, began in earnest on 29
December. The PPA is a 25-year contract under which Vietnam will purchase electricity from Bac Lieu,
with a lifetime value of approximately US $50 billion.

“This project is one of the foundation stones of a bright future for Vietnam,” said Bobby Quintos,
Managing Director of DOE. “Because the PPA represents a great commitment from the Vietnamese
people and a long-term relationship with DOE, both parties are proceeding in a spirit of diligence and
collaboration to craft a responsible agreement that respects the interests of the people and the commercial
viability of the project. As a pioneering project, this may take a little more time than was originally
envisioned, but the work we do today will have a major impact on future generations. Our descendants
and theirs will thank us for the care we applied today in looking out for their interests.”

The technical milestones achieved in 2020 by the Bac Lieu LNG2P team were also quite significant.
Among them:

1. The Request for Proposals (RFP) from suppliers of liquefied natural gas (LNG), which essentially asks
for a price quote on delivery of 25 years worth of LNG, reached a semi-final stage in which 9 bidders
(from an initial field of 29 suppliers) remain.

2. The choice for design and construction of the LNG floating storage unit (FSU), a key element of the
power plant’s fuel supply, reached the final stage, with DOE beginning review of the two most interesting
bids.

3. International contractors McDermott completed the front-end engineering design (FEED) of the
pipeline that will transport the gas from the regasification terminal to the power plant.

4. Regarding the onshore power plant itself, two important milestones were reached. Global engineering
company Bechtel completed the all-important pre-FEED study necessary to establish the engineering

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basis of the plant, and international engineering firm Black & Veatch completed their Concept Study of
the plant.

“The Bac Lieu LNG-to-Power plant will enable the clean industrialization of Bac Lieu province, which in
turn will help the Government eradicate poverty and elevate the lives of the people of the region,” said
Ian Nguyen, Managing Director of DOE based in Hanoi, Vietnam. “All stakeholders are aligned and
committed to the goal of delivering reliable and affordable clean energy to Vietnam. It is a shining
example of international collaboration, and will help Vietnam leapfrog in its socio-economic
development to become a truly globalized economy of the future.”

Note:

The Bac Lieu LNG-to-power (LNG2P) project represents a revolutionary step for Vietnam. It is the first
major project to be 100% private sector funded in Vietnam, and the first new step in the country’s
transition from coal to gas as a primary fuel for power generation. It will help Vietnam achieve energy
security, will support its industrialization, and will be a foundation for reducing poverty and improving
quality of life in one of its poorest regions. Approved in Vietnam’s current national power plan (PDP7
revised), Bac Lieu LNG2P is now finalizing a binding power purchase agreement (PPA) with the
Vietnam government.

Vietnam has emerged as the top Foreign Direct Investment destination in the region, and is well-placed to
benefit from the “China Plus-one” strategy being pursued by many global industries. Vietnam’s rapid
industrialization is straining its existing electric power grid, and serious shortages and outages are already
an issue in some parts of the country, particularly in South Vietnam, which has the largest population and
industrial cluster in the nation. Expected to enter into service in 2024, the Bac Lieu LNG2P project will
help provide much-needed power security and will use LNG as the clean-burning fuel to do so.

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Contact Information:
Delta Offshore Energy
Miriam Martinez
956-451-5046
Contact via Email
deltaoffshoreenergy.com

Online Version of Press Release:

You can read the online version of this press release at: https://www.pr.com/press-release/829488

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