Petrovietnam Gas aims to supply $2 bln LNG power plant in northern Vietnam

PV Gas, a subsidiary of state-owned Petrovietnam, aims to supply LNG to the $2-billion Thai Binh LNG-to-power plant project in the northern province of Thai Binh, the firm told provincial authorities on Tuesday.

PV Gas, currently the only LNG exporter-importer and the operator of the only LNG terminal in Vietnam, said it aims to deliver LNG to the power plant project and other industrial consumers in the province via PV Gas’s current pipeline connected to its floating storage regasification unit (FSRU) in the first phase.

In the second phase, PV Gas strives to supply LNG via its to-be-built LNG terminals in neighboring areas of Nam Dinh province and Haiphong city, the company said in a meeting.

PV Gas also mulls over a plan of delivering gas from Ky Lan gasfield in Block 103 and Block 107, offshore Thai Binh province, to supply users in Thai Binh.

Once operational, the LNG supply to users in Thai Binh province can lead to annual revenue of $1 billion and yearly contribution of VND2.5 trillion ($98.5 million) to the state budget, it said.

Gas consumption by businesses in Thai Binh reached 62.8 million cubic meters in 2023 and can increase to 63.1 million cubic meters in 2024 and 69 million cubic meters in 2025, according to provincial data.

When the $2-billion Thai Binh LNG-to-power plant is operational, with a capacity of 1,500 MW, the consumption can grow to 1.2 million tons a year.

Backing the proposal, Ngo Dong Hai, chief of Thai Binh Party Committee, asked relevant agencies to study PV Gas’s suggestions. Thai Binh authorities are willing to connect PV Gas to the investors of the to-be-built LNG power plant, in order to facilitate agreements among sides, he added.

PV Gas’s plan of investing in Thai Binh province can fulfill trends of green industry and zero carbon, while making big payments to the provincial budget and employing many people, Hai lauded.

In December 2023, Thai Binh's Party Committee gave an in-principle nod to the $2 billion LNG Thai Binh thermal power plant in Thai Thuy district, tasking the provincial People’s Committee with completing legal procedures for the project.

The same month, the joint venture was handed an investment license to build the project at the Vietnam-Japan Economic Forum held in Tokyo during Prime Minister Pham Minh Chinh's December 15-18 visit to Japan.

In January 2024, Japan’s Tokyo Gas Co., Ltd. announced the formal establishment of the joint venture to build the LNG-to-power plant. It said that Thai Binh LNG Power JSC had been set up with Tokyo Gas, Japan’s Kyuden International Corporation and Vietnam’s Truong Thanh Vietnam Group as partners.

Thai Binh LNG Power JSC plans to start work on its $2 billion, 1.5 GW LNG-to-power plant in Thai Binh in the third quarter of 2025. The power plant is designed to provide 10 billion kWh to the national grid and pay VND4 trillion ($162.57 million) in taxes every year.