Energy Capital Vietnam (ECV), a U.S.-based project holding and development company established in 2015 to serve as a platform for private investment into Vietnam, has announced that B.Grimm Power of Thailand and Siemens Energy have joined its consortium to develop an LNG-to-power project in Mui Ke Ga (MKG), Binh Thuan Province, in Southern Vietnam.
B.Grimm Power and ECV have signed a Joint Development Agreement, and B.Grimm Power intends to invest approximately $200 million in equity at financial close of the project. 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 a smooth project implementation as well as reliable and efficient electricity production.
Siemens Energy will deliver advanced technology equipment into the project to reduce the global carbon footprint by bringing cleaner burning gas to a still coal-dominated region. Further, Siemens Energy is evaluating to participate with 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 Dr. Harald Link, Chairman and President of B.Grimm Power. "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."
David Lewis, ECV Chairman and CEO, said the addition of B.Grimm Power and Siemens Energy as partners speaks to the strength of the MKG project in Vietnam.
"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," 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. Maius GmbH has been engaged on project risk mitigation and financing solutions.