VIETNAM LNG TO POWER SUMMIT 2019
Managing Director of Origination and Stakeholder Relations for DOE, Mr Ian Nguyen, joined a panel with leading experts on LNG to power project developments and investments at the Vietnam LNG to Power Summit 2019 that was held in Hanoi in September, 2019.
The panel of private sector stakeholders shared insights from their practical experience on the ground for the discussion that was titled “Joint Development & Investment for LNG-to-Power Project in Vietnam”. As Ian observed “An overarching principle for any project development is the alignment and consensus necessary between stakeholders and the industry itself.” He went on to reiterate the need for both flexibility and adaptability in the process. To be effective, the development and investment model needs to be adaptive through an iterative, innovative and solutions-driven approach.
Ian concluded by saying “There is no optimal model between unbundled tolling and a fully integrated project. Instead, success will be driven by the adaption of various global models that cater to the needs of the country and that meet commercial reality.“
Image of Participants (left to right):
Dave Seibert, Senior Legal Adviser / Deputy Head of Regional Energy Mining and Infrastructure Group, DFDL Mekong
Pham Ba Linh, Managing Partner and Head of Energy, Project Finance and Infrastructure, Lexcomm Vietnam LLC
Managing Director, Origination and Stakeholder Relations, Delta Offshore Energy
Kris Karafa, COO, Gen X Energy
Abhay Shah, Senior Vice President Business Development, Marubeni Asian Power
The event included over a hundred participants in the public and private sector and dozens of international and local experts. Discussions examined key issues related to legal, technical and financial factors required to develop the nascent LNG to power industry. Other key takeaways included :
Understanding the end-game on all sides is vital. Ultimately Vietnam wants clean and competitive electrons to the grid. The private sector participants want a feasible and bankable project that is back-to-back / fixed margin where the risks are allocated and covered.
De-risking objectives on all sides are critical for ring-fencing capital at risk, from the development stage through to FID. This requires capable actors and nimble maneuvering to drive alignment and consensus.
Law on Investments vs.-PPP-BOT - regardless of the investment scheme, the contractual agreements and risk allocations must be bankable.
More information can be found on the event website (link HERE)