LNG-to-power projects in central Vietnam still drafting feasibility studies

Two mega LNG-to-power projects in Vietnam’s central coastal province of Binh Thuan are still drafting feasibility studies despite receiving in-principle approvals years ago.

The 2,250 MW Son My 1, to be developed under the build-operate-transfer (BOT) format, is jointly invested by France’s EDF, Japan’s Kyushu and Sojitz, and Vietnam’s Pacific Corporation, with an investment of $2.2 billion.

The investors were approved by the Prime Minister in 2018 and received in-principle approval from the Ministry of Industry and Trade (MoIT) in 2021.

The 2,250 MW Son My 2, also under the BOT format, is jointly invested by the United States’ AES and Petrovietnam subsidiary PV Gas, with an investment of $2.1 billion. The investors were approved by the Prime Minister in 2019 and received in-principle approval from the MoIT in 2022.

Both projects are located in Son My 1 Industrial Park of Ham Tan district.

The two projects are part of an LNG-to-power chain in Binh Thuan province. The chain also features Son My LNG Terminal, Son My power center, a project to connect Son My power center to the national grid, and the Son My-Phu My gas pipeline project.

According to Binh Thuan authorities, despite the provincial authorities’ support, especially in site clearance, the projects are still drafting feasibility studies.

Binh Thuan Vice Chairman Nguyen Hong Hai has requested relevant agencies to help with the projects’ progress. For instance, the Binh Thuan Department of Natural Resources and Environment was required to speed up land-related procedures for the two projects.

Hai also asked the project investors to work with ministries and centrally-run agencies to speed up the progress.

Binh Thuan authorities insist on the projects becoming operational in 2027-2029.