Northern Vietnam province accelerates $2.2 bln LNG-to-power project

Quang Ninh province will hand over 4.9 hectares of reclaimed land to the Quang Ninh LNG-fuelled power plant project before August 11, local authorities stated at a meeting on Wednesday.

Work is underway for the remaining land to be allocated to the 41.12-hectare project in Q3 of this year, while the water surface area will be handed over this August.

The $2.2 billion Quang Ninh LNG-to-power project, invested by Quang Ninh LNG Power JSC, includes a 1,500 MW power plant using combined cycle gas turbine technology; a 500kV distribution yard; infrastructure and technical works serving the power plant; and an LNG terminal at the scale of 1.2 million tons of LNG per year. The power plant will have two turbines of 750 MW each.

The project, located in Cam Pha town, is expected to add about 9 billion kWh of electricity per year to the national power system, contributing to ensuring energy security, reducing greenhouse gas emissions, and contributing about VND57,700 billion ($2.2 billion) to the local budget within 25 years.

Quang Ninh LNG Power JSC is a joint venture among state-owned Petrovietnam's subsidiary PV Power, Quang Ninh-based Vietnam Mechanical Assembly JSC (Colavi), and two Japanese firms – Tokyo Gas and Marubeni.

The plant is included in the Power Development Plan VIII (PDP VIII) as a priority project. The investors planned to complete the installation of the first turbine in April 2027 and the second turbine in June 2027.

Quang Ninh currently has seven coal-fired power plants in operation with a total capacity of 5,640 MW.

The province's first LNG-to-power project, when put into operation, will contribute to the policy of transforming the development model from "brown" to "green".

The Nhon Trach 4 power plant, one of two units in Vietnam’s first LNG-fueled power complex, in Dong Nai province officially connected to the national grid on June 28 with an initial capacity of 50 MW.

Nhon Trach 3, the sister plant, connected to the grid in February and is currently undergoing trial operations. It is expected to commence commercial operation by mid-August 2025.