LNGL Comments on Vietnam Power Development Plan 7 Approval
Perth, Dec 27, 2019 AEST (ABN Newswire) - Further to the attached Press Release from Delta Offshore Energy Pte Ltd (DeltaOE), Liquefied Natural Gas Limited (
ASX:LNG) (LNGLY:OTCMKTS) (LNGL or the Company) wishes to express its support and gratitude for the recent approval of the amendments to Vietnam's Power Development Plan 7 (PDP7) by Prime Minister Nguyen Xuan Phuc. The amendments incorporate DeltaOE's proposed 3,200-megawatt LNG-to-power project into the PDP7, which had originally been planned as a coal-fired facility.
The approval clears the path for DeltaOE to negotiate and finalize a 25-year power purchase agreement (PPA) with EVN to underpin its LNG-to-power project in Vietnam's Bac Lieu Province, and concurrently, empowers LNGL and DeltaOE to finalize a binding sale and purchase agreement (SPA) for delivery of 2 million tonnes per annum (mtpa) of U.S. liquefied natural gas (LNG) from Magnolia LNG (Magnolia) pursuant to the parties' non-binding memorandum of understanding (MOU).
"As we have previously disclosed, the approval of the amendments to Vietnam's Power Development Plan 7 was the prerequisite for execution of our binding sales and purchase agreement with our partners, Delta Offshore Energy, for 2 mtpa from Magnolia," said Greg Vesey, Executive Chairman, Managing Director, and CEO of LNG Limited. "We thank Prime Minister Phuc and members of his Cabinet for their supportive efforts, and will immediately begin completing the terms of what will be the first long-term sale and purchase agreement for LNG to Vietnam."
About Liquefied Natural Gas Ltd
Liquefied Natural Gas Limited (
ASX:LNG) (OTCMKTS:LNGLY) (LNGL) is an ASX listed company whose portfolio consists of 100% ownership of the following companies:
- Magnolia LNG, LLC (Magnolia LNG), a US-based subsidiary, which is developing an eight mtpa or greater LNG export terminal, in the Port of Lake Charles, Louisiana, USA;
- Bear Head LNG Corporation Inc. (Bear Head LNG), a Canadian-based subsidiary, which is developing an 8 – 12 mtpa LNG export terminal in Richmond County, Nova Scotia, Canada with potential for further expansion;
- Bear Paw Pipeline Corporation Inc. (Bear Paw), which is proposing to construct and operate a 62.5 km gas pipeline lateral to connect gas supply to Bear Head LNG; and
- LNG Technology Pty Ltd, a subsidiary which owns and develops the Company's OSMR® LNG liquefaction process, a midscale LNG business model that plans to deliver lower capital and operating costs, faster construction, and improved efficiency, relative to larger traditional LNG projects.
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