Petrovietnam eyes $2.5 bln LNG investment in Vietnam central province

State-owned oil and gas group Petrovietnam plans to invest $2.5 billion in LNG facilities in the central province of Ha Tinh, a Petrovietnam delegation led by chairman Le Manh Hung told Ha Tinh authorities on Sunday.

PV Power, the power generation arm of Petrovietnam, proposed a $1.5 billion LNG-fired power plant. The project has a designed capacity of 1,500 MW and can be expanded to reach 4,500 MW. It is set to cover 80 hectares of land and 10 hectares of water, and construction of the plant will kick off in 2026 and enter commercial operations in 2030, PV Power said.

PV Gas, the gas business of Petrovietnam, suggested an LNG terminal project with an investment of $1 billion. The project is scheduled for completion in 2029-2030, with an annual capacity of one-three million tons, in line with the progress of the power plant project. It is set to cover 50 hectares of land and 426 hectares of water.

Both projects will be located in Vung Ang Economic Zone. The LNG terminal will supply the power plant and other LNG users in nearby areas, PV Gas said.

Speaking at the meeting, Le Manh Hung appreciated Ha Tinh authorities’ backing for the project and called on them to help develop details of the development. The development of an LNG terminal is only feasible as long as there is an LNG-fired power plant as a major LNG consumer, he clarified.

In reply, Hoang Trung Dung, chief of Ha Tinh Party Committee, said the province is willing to fortify the cooperation between the two sides. Ha Tinh authorities will work with the government and relevant ministries to facilitate Petrovietnam’s projects, he added.

He also called on Petrovietnam to invest more in the province, especially in gas-fired power, wind power, and oil-gas activities. Besides, he suggested Petrovietnam invest in planting trees and building houses for workers in the province.

Vietnam currently has no operational LNG-to-power projects. Nhon Trach 3 and Nhon Trach 4, the first two in Vietnam, are under construction in the southern province of Dong Nai.

The eighth national power development plan (PDP VIII), approved in May 2023, promises to open a new chapter for Vietnam’s electricity industry, with gas defined as the key fuel in 2021-2030.

The list of priority LNG projects for development by 2035, featured in Table 1 of Appendix II of PDP VIII, 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).

The LNG projects in Ha Tinh are currently not part of PDP VIII.