Citibank, ING lend PV Power $300 mln to develop Vietnam's first two LNG plants

PetroVietnam Power (PV Power) has reached agreement for a $300 million short-term loan from the U.S.’s Citibank and the Netherlands-based bank ING for developing Vietnam’s first LNG power plants.

The agreement, concluded April 4, relates to the Nhon Trach 3 and 4 power plants in the eponymous district, Dong Nai province, southern Vietnam.

PV Power, listed on the Ho Chi Minh Stock Exchange (HoSE) as POW, is also in talks with the two lenders for an export credit agency (ECA)-backed long-term financing of $600 million for implementing the two LNG projects.

A subsidiary of state-run PetroVietnam, PV Power is the second largest electricity producer after national utility Vietnam Electricity (EVN), and the market leader for gas-fuelled power in the country.

The firm started making capital arrangements for the two projects in 2018 and is still in negotiations with its foreign partners, including Japan’s Sumitomo Mitsui Banking Corporation (SMBC).

Construction of the Nhon Trach 3 and 4 LNG power plants, with a total capacity of 1,620 MW and investment of $1.4 billion, started in 2021. They are set to enter commercial operations on November,15, 2024 and May 15, 2025, respectively.

The eighth national power development plan (PDP8), approved last May, promises to open a new chapter for Vietnam’s electricity industry, with gas defined as the key fuel in 2021-2030.

The list of priority LNG projects for development by 2035, featured in Table 1 of Appendix II of the national plan, include Quang Ninh (1,500 MW); Thai Binh (1,500 MW); Nghi Son (1,500 MW); Quang Trach II (1,500 MW); Quynh Lap/Nghi Son (1,500 MW); Hai Lang - Phase 1 (1,500 MW); Ca Na (1,500 MW); Long Son (1,500 MW); Hiep Phuoc - Phase 1 (1,200 MW); Long An I (1,500 MW); Long An II (1,500 MW); and Bac Lieu (3,200 MW).