A memorandum of understanding (MoU) on the building of a 3,200MW liquefied natural gas-fired power plant in the Mekong Delta province of Bac Lieu was signed between representatives of the provincial People’s Committee and Singapore’s Delta Offshore Energy Pte.Ltd (DOE), at a ceremony in the locality on October 12.

According to the MOU, the signatories are committed to coordinate with central and local management agencies in completing the remaining tasks in developing the projects in 2020 on schedule.

Official negotiations on a 25-year power purchase agreement between DOE and the Electricity of Vietnam (EVN) will start immediately after the event. The agreement is expected to be inked by the end of this year.

The technical design is scheduled to be completed by the end of 2020, enabling the project’s construction to begin in 2021. The first turbine of the plant is hoped to become commercially operational in 2024.

The project, worth approximately US$4 billion, is the biggest foreign direct investment (FDI) projects in the Mekong Delta region. It is expected to create thousands of jobs and contribute more than VND3 trillion (US$129.6 million) per year to the State budget.