Construction of first northern Vietnam LNG power project must start in Q3: Quang Ninh authorities

Authorities in Vietnam’s northern province of Quang Ninh have requested the investor and relevant agencies to urgently complete legal procedures to start construction of a $2.23 billion LNG power project in the third quarter of this year.

If the schedule is not met, the project's license will be revoked, stressed Cao Tuong Huy, Chairman of the provincial People's Committee while chairing a meeting reviewing the project’s progress on Saturday.

Covering 60 hectares in Cam Thinh ward, Cam Pha town, the Quang Ninh LNG power project was included in the newly-approved power development plan VIII (PDP VIII) as a priority project. It is designed to have two turbines with a total capacity of 1,500 MW.

Its investor is Quang Ninh LNG Power JSC - a consortium of PV Power, a subsidiary of state-owned Petrovietnam; the Quang Ninh-based Vietnam Mechanical Assembly JSC (Colavi); and Japanese firms Tokyo Gas and Marubeni.

As the first power project in northern Vietnam to use imported liquefied natural gas (LNG), once operational, it will contribute to promoting the rapid development of LNG thermal power, making it an important source of electricity for the nation.

At the same time, it will help realize the goal of building Quang Ninh into a growth hub, a gateway for international economic cooperation, and a source of fuel and energy supplies for the whole country.

The project was initiated at the end of October 2021 and is expected to go into commercial operation in the third quarter of 2027. When put into operation, it is expected to contribute VND57.7 trillion ($2.43 billion) to the local budget over 25 years.

At the meeting, the investor reported that the project feasibility study report has been submitted to the Electricity and Renewable Energy Authority under the Ministry of Industry and Trade (MoIT) for appraisal.

Its detailed construction planning at a scale of 1/500 is being adjusted under the directions of the Ministry of Natural Resources and Environment and the Ministry of Transport.

The investor has also worked on an agreement with state utility Vietnam Electricity (EVN) on a plan to connect the plant to the national grid, it added.

The provincial chairman asked the investor to prioritize resources to speed up the progress of completing investment procedures in order to kick off construction of the project in Q3 in accordance with the MoIT' instructions.

“It should closely coordinate with the MoIT to complete documents to serve the appraisal and approval of the project feasibility study,” he stated.

Huy also asked relevant agencies to strengthen coordination and support the investor to effectively deploy related works.

He required the Department of Planning and Investment to make adjustments to the investment registration certificate within five days from the time it receives completed dossiers from the investor.

Cam Pha must immediately approve the adjustment of the detailed construction plan at a scale of 1/500 for the project before March 10, 2024, and closely coordinate with the investor to complete site clearance work, he noted.