Only four LNG-fuelled power projects are added to the country’s draft national power development plan VIII (PDP VIII), according to the Ministry of Industry and Trade.
In its latest proposal to the government dated October 13, the ministry explains that maximum priority should be given to power projects fuelled by natural gas sourced domestically. Therefore, the PDP VIII should include only four LNG-to-power projects with a combined capacity of 6 gigawatts.
They are Thai Binh (1,500 megawatts) in Thai Binh province in the north, Nghi Son (1,500 MW) in Thanh Hoa, Quynh Lap (1,500 MW) in Nghe An, and Quang Trach II (1,500 MW) in Quang Binh in the central region.
The first two are new projects, while the other two are coal-fired power plants in the power development plan VII (PDF VII) to switch to LNG.
The ministry notes that adding these two new projects to PDP VIII is necessary amid fast-increasing demand in northern areas.
The latest proposal reduced the source of power from imported LNG by 17,000 MW compared with the ministry's proposal submitted in March 2021. The plan is 23,900 MW will be generated from LNG by 2030.
Apart from the four mentioned-above projects in PDP VIII, 11 others with total capacity of 17,900 MW were already approved and added to the amended PDF VII, namely Nhon Trach 3, 4 (1,500 MW), Hiep Phuoc phase 1 (1,200 MW), Bac Lieu (3,200 MW), BOT Son My 1 (2,250 MW), Long An 1 (1,500 MW), Ca Na (1,500 MW), Quang Ninh 1 (1,500 MW), Long Son (1,500 MW), and Hai Lang (1,500 MW).
Of these, nine with total capacity of 14,900 MW have found investors. The Ca Na and Long Son (totally 3,000 MW) are yet to have investors.
The Nhon Trach 3, 4 and Hiep Phuoc phase 1 (totally 2,700 MW) have their feasibility studies approved by authorities, while the Ca Na is about to organize international bidding to select investors.
The Long Son, which has "the best localtion" given the port infrastructure and connections to grids, is expected to come into operation before 2030.
Under the latest proposal, developing domestic gas exploration projects would be encouraged as alternatives to imported LNG. Vietnam’s two most-expected gas exploration projects until 2030 are Block B off the south coast and Blue Whale off the central region.
The Block B gas project, invested by Petrovietnam, is expected to provide natural gas for the major O Mon power center in Can Tho city, the Mekong Delta hub. The center includes four LNG-to power projects with about 3,810 MW in combined capacity - O Mon I, O Mon III, and O Mon IV, invested by state utility Vietnam Electricity; and O Mon II, invested by a consortium between Japan’s Marubeni and Vietnam’s Vietracimex.
Blue Whale, or Ca Voi Xanh, is the largest gas field in Vietnam. American giant ExxonMobil and Petrovietnam have been jointly working for years with the hope of co-developing the project, but a final investment decision has not been reached.
The multi-billion U.S. dollar integrated gas-for-power development is expected to boost central Vietnam’s development and reduce the country’s gas imports.