EVN, PowerChina sign $962 mln EPC contract for central Vietnam LNG power plant

State-owned Vietnam Electricity (EVN) has inked an engineering, procurement and construction (EPC) contract worth over $962 million for a power plant within the Quang Trach II LNG power project, a key development under the country’s eighth national power development plan (PDP VIII).

The EPC contract was signed on Monday by EVN, its Power Projects Management Board No. 2, and a contractor consortium comprising Power Construction Corporation of China (PowerChina) and Vietnamese industrial engineering company Lilama.

Quang Trach II will be built at the Hon La Economic Zone in the central province of Quang Tri, with EVN as the investor. The LNG-fired power plant will have a total installed capacity of over 1,612 megawatts, comprising two combined-cycle gas turbines of 806.4 MW each.

The project has a total investment of more than VND52.49 trillion ($2.03 billion), financed with 20% equity and 80% commercial loans. It is expected to enter commercial operation in 2028-2029, with full completion slated for 2030.

It consists of two sub-projects: the power plant, with an investment of VND40.12 trillion ($1.55 billion), and an LNG terminal and port estimated at VND11.8 trillion ($456.02 million).

The financing package is jointly provided by four domestic lenders: Vietcombank, VietinBank, BIDV, and Agribank.

Under the EPC contract, the PowerChina-Lilama consortium will carry out detailed design, equipment procurement, construction, installation, testing, and handover of the plant. The project will use gas turbine technology supplied by the U.S.’s GE Vernova, one of the world’s leading turbine manufacturers.

Once operational, Quang Trach II is expected to supply about 10 billion kilowatt-hours of electricity annually to Vietnam’s national power grid, supporting the country’s transition toward cleaner energy sources and improving power supply security.