On Thursday, Energy Capital Vietnam (ECV Holdings), a Houston, Texas-based project holding and development company founded in 2015 as a platform for private investment into Vietnam, announced that it has welcomed Thailand utility company B.Grimm Power and Siemens Energy into its consortium to develop a first-of-its-kind LNG-to-power project in Mui Ke Ga (MKG), in Southern Vietnam’s Binh Thuan Province.
B.Grimm Power and ECV have signed a Joint Development Agreement, with B.Grimm Power committed to investing some $200 million in equity at financial close of the project. According to a statement from ECV, B.Grimm Power’s more than 20 years presence in Vietnam and expertise in operating gas fired power plants with a total capacity of more than 2,000 MW will ensure smooth project implementation, as well as reliable and efficient electricity production.
Siemens Energy will supply advanced technology equipment to reduce the project’s global carbon footprint by bringing cleaner burning gas to a region still dominated by coal-fired plants. Siemens Energy is reportedly also mulling the provision of construction equity to the project, which has an estimated total project cost of $1.75 billion.
“B.Grimm Power is excited to work with ECV, Siemens Energy and Maius to deliver the MKG LNG project on time and we welcome the timely issuance of Power Development Plan VIII,” said B. Grimm Power Chairman and President Dr. Harald Link. “We find great confidence in the innovative risk mitigation approach applied to the project as a cornerstone for the Vietnamese energy transition. As internationally recognized, LNG is a cleaner, cost-effective fuel alternative to coal. MKG LNG can help the energy transition in Vietnam in accordance with commitments made under the Paris Accords and at COP26.”
“Partnering with B.Grimm Power and Siemens Energy bolsters ECV’s first-class LNG-to-power project that will provide critical energy security to Vietnam,” ECV Chairman and CEO David Lewis said. “Beyond world-class engineering competence and efficiency, B.Grimm Power and Siemens Energy take a comprehensive approach to development by leveraging global relationships and experience to deliver turnkey solutions.”
ECV is forming a Joint Venture with Gunvor International BV, one of the world’s leading independent energy commodities trading houses, to supply LNG on a long-term basis. Deutsche Bank AG has been mandated as the debt structuring bank, while Switzerland’s Maius GmbH has been engaged on project risk mitigation and financing solutions.
