Northern Vietnam province to finalize land clearance procedures for $2.2 bln LNG power project in Sept

Concerned authorities in Quang Ninh province gathered on Monday to discuss resolving land clearance and compensation bottlenecks for a $2.2 billion LNG-to-power plant project.

The project, a key part of Vietnam’s national energy strategy, covers over 41 hectares and affects multiple households and entities in Cua Ong ward. However, disputes over land origin and compensation plans, especially for properties dated before July 1, 2004, have delayed site handover.

Vice Chairman of the provincial People’s Committee Le Van Anh stressed the project’s strategic importance to energy security and called for urgent review of all legal documents and land ownership records. Transparent compensation policies and direct dialogues with affected residents are identified as crucial to reaching consensus.

The province targets completion of all clearance and compensation procedures by September 2025 - a prerequisite for construction to begin, he noted.

Turning the $2.2 billion vision into reality

Launched in 2021, the Quang Ninh LNG-to-power plant was initially set to begin partial operation in 2026. Delays have pushed its expected commercial launch to 2028-2029, under Vietnam’s Power Development Plan VIII (PDP8). Authorities are now pushing to bring operations forward to Q3/2027.

The $2.2 billion project 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.

It is expected to add about 9 billion kWh of electricity per year to the national power system, contributing to ensuring energy security and reducing greenhouse gas emissions.

The plant is hoped to contribute approximately VND67 trillion ($2.54 billion) to state and provincial budgets over 25 years, while creating thousands of local jobs and stimulating related industries such as logistics and energy services.

The project is developed by Quang Ninh LNG Power JSC, 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.

Adjustments to align the project with the PDP8 have led to changes in project scope, land and water areas, and technical specifications, contributing to delays. To address these, Quang Ninh established a task force in July 2024 to coordinate problem-solving efforts across departments. A provincial resolution has also cleared the way for land recovery.

Several key legal procedures are now complete, including in-principle investment approval, investor selection, environmental impact assessment, and inclusion of the LNG terminal in the national port system, laying the groundwork for construction to move ahead.

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".