Quang Tri province, set to become a power hub in central Vietnam, has presented to the Ministry of Industry and Trade a series of proposals to accelerate the execution of its Hai Lang LNG-to-power project.
Plans for the LNG power project were finalized under Vietnam's power development plan VIII in May. The investors are South Korea’s state-run Korea Gas Corp. (Kogas), a major gas company in Asia, Hanwha Energy, Korea Southern Power (Kospo) and Vietnamese group T&T.
Kogas has anticipated an annual revenue surpassing 1 trillion won ($766 million) if the project commences commercial operations by the end of 2028.
The four-side consortium started technical work, not construction work, for the first phase of the $2.3-billion project in Hai Lang district in January 2022. However, site clearance for the project is yet to be completed, and a feasibility study is not available.
The consortium has signed contracts with Vietnam’s Institute of Energy (the main consultant for the project) and global engineering company Tractebel (sub-consultant for the project) to prepare for a feasibility study and mechanical design for the first phase.
Le Tien Dung, director of the provincial Department of Industry and Trade, updated this to Minister of Industry and Trade Nguyen Hong Dien, who visited the province on Wednesday to scrutinize the significant project.
Dung urged the ministry (MoIT) to direct state-run utility Vietnam Electricity (EVN) and National Power Transmission Corp. to support the consortium in connecting the project to the national grid.
Quang Tri also asked the MoIT to provide specific guidance on building an LNG terminal in harmony with the country’s newly-approved scheme for the storage of oil and gas.
Minister Dien asked the province to provide full support for the consortium as the project is of great significance. He told provincial officials to promptly remove obstacles facing site clearance and speed up administrative procedures, including environmental and other relevant issues.
The minister requested the consortium to submit the feasibility study no later than this September so that construction can start in the third quarter of 2024.
Kogas announced on June 23 that it had signed a memorandum of understanding on the same day with PV Power, a state-run power corporation in Vietnam, and domestic partner T&T Group.
Under this partnership, the three sides plan to uncover opportunities in Vietnam's gas-to-power projects, LNG terminal-associated initiatives, and the hydrogen business. These initiatives aim to bolster Vietnam's long-term power development strategy.
The gas-to-power business venture involves the supply and sale of electricity generated from combined heat and power systems that utilize natural gas as fuel. This expansive infrastructure project encompasses the procurement of LNG, the main raw material, and the development and operation of LNG terminals and power plants.
With the MoU signed during South Korea President Suk Yeol's state visit to Vietnam, Kogas intends to spearhead additional gas-to-power initiatives in the country.