Wind energy – Vietnam
Russian state-owned oil and gas producer Zarubezhneft and Belgian-based DEME Offshore have set their sights on constructing a 1 gigawatt wind farm offshore Vietnam after signing of a pact earlier this week.
Both companies signed a Memorandum of Understanding covering the proposed Vinh Phong project, which is estimated will cost $3.2 billion.
It is the first time a Russian developer is looking at offshore wind developments.
Zarubezhneft said it will share investment costs with DEME Concessions Wind.
Under the arrangement, the pair will hire oil and gas producing venture Vietsovpetro and DEME Offshore to manage the construction process, as both these companies possess required technical and construction experience.
Vietsovpetro, which operates several offshore oil and gas blocks in Vietnam, is a joint venture between Zarubezhneft and state-run PetroVietnam.
Zarubezhneft said that the Vinh Phong partners will strive to bring online the 600 megawatt first phase by 2026 and the 400MW second phase by 2030.
Vinh Phong is one of the 157 marine wind farm projects with total capacity of over 61GW that Vietnam’s Ministry of Industry & Trade has proposed to be included in the eighth version of the country’s Power Development Master Plan.
Following the Ministry’s proposal, revealed at the end of the last year, a survey permit for Vinh Phong was issued to an alliance of Zarubezhneft and DEME Offshore, with other potential investors also obtaining permits for proposed sites.