Nghe An province to push progress of LNG power project

Vietnam’s central province of Nghe An is looking to add the Quynh Lap LNG-to-power plant project to its energy masterplan by August 30 before starting the investor selection process in October.

Provincial authorities made the request last week, in line with the Ministry of Industry and Trade’s conclusions on how to implement LNG-to-power projects in Vietnam. Nghe An authorities have also asked the provincial Department of Industry and Trade for monthly progress reports and recommendations, if any.

On August 9, Minister of Industry and Trade Nguyen Hong Dien chaired a conference on implementing LNG-to-power projects within the national power development plan VIII (PDP VIII). Concluding the event, the ministry listed four projects, namely LNG Thai Binh in Thai Binh province, LNG Nghi Son in Thanh Hoa province, LNG Quynh Lap in Nghe An province, and LNG Ca Na in Ninh Thuan province, saying that investor selection must be completed in October 2023, followed by feasibility studies by March 2024, and the start of construction in December 2024.

The Quynh Lap LNG power project was originally planned as a thermal plant. In the previous PDP VII, the thermal power project featured two factories, Quynh Lap I and Quynh Lap II, with a total capacity of 2,400 MW. Construction of the $2.2 billion project commenced in October 2015 but was later halted.

In the latest PDP VIII, the project was abolished, along with many other coal-fired power plants totaling 13,220 MW. As a replacement, the electricity sector has been tasked with checking suitable locations in Nghe An or Thanh Hoa provinces, both in central Vietnam, to establish a LNG-to-power plant of 1,500 MW in 2021-2030. In December 2021, Nghe An province submitted a document to the government to seek approval to transform the coal-fired power plant project into an LNG-fired plant.

Vietnam currently has no operational LNG power plants. PV Power’s Nhon Trach 3 and 4 power plants, with a combined capacity of 1.6 GW, will be Vietnam’s first LNG-to-power projects. They are under construction in the southern province of Dong Nai near Ho Chi Minh City.

The freshly approved PDP VIII is expected to open a new chapter for Vietnam's electricity industry, with gas to become a key fuel in 2021-2030. The list of priority LNG projects for development by 2035, contained in Table 1 of Appendix II of the national plan, include: Quang Ninh (1,500 MW); Thai Binh (1,500 MW); Nghi Son (1,500 MW); Quang Trach II (1,500 MW); Quynh Lap/Nghi Son (1,500 MW); Hai Lang Phase 1 (1,500 MW); Ca Na (1,500 MW); Long Son (1,500 MW); Hiep Phuoc Phase 1 (1,200 MW); Long An I (1,500 MW); Long An II (1,500 MW); and Bac Lieu (3,200 MW).