Vietnam’s Mekong Delta province of Long An has approved implementation plans for the Long An 1 and Long An 2 LNG-to-power plant project, aiming for commercial operations from June 2028 and June 2031, respectively.
Long An authorities have asked relevant parties to complete preparations for construction and sign an EPC (engineering, procurement and construction) contract for the project in Q3/2024.
They affirmed the move aims to bring the Long An 1 and Long An 2 power plants, along with their gas pipeline facilities and power grids, into operation per the prime minister’s approval.
In March 2021, Long An province granted an investment certificate to VinaCapital GS Energy Pte.Ltd. The firm was established by VinaCapital, one of the largest investment management companies in Vietnam, and GS Energy, the energy unit of South Korean chaebol GS Group.
The two plants, with a combined investment of $3.13 billion and a capacity of 3,000 MW, are located in Can Giuoc district. The project, Vietnam’s first approved conversion from coal-firing to LNG-firing, is included in the country's latest Power Development Plan VIII (PDP VIII).
In June 2023, Export-Import Bank of Korea (Korea Eximbank), VinaCapital, and GS Energy inked a memorandum of understanding to finance the project. The signing took place on the sidelines of the Vietnam-Korea Business Forum held in Hanoi during the three-day state visit by South Korean President Yoon Suk Yeol.
In December 2023, the Government Inspectorate pointed out that Long An authorities had shown lax management that led to violations in the management and use of land and investment in solar power and LNG-fired thermal power plants.
The inspectors concluded that although the power plants had their investment plans approved in 2021, their developer VinaCapital GS Energy Pte. Ltd had failed to make a deposit or bank guarantee on the deposit obligation at a rate of 1% of the project's total investment capital, equivalent to $31.2 million.