Petrovietnam set to begin work on two thermal power plants in Mekong Delta

State-owned Petrovietnam plans to begin work this year on the O Mon 3 and O Mon 4 gas-fired thermal power plant projects in the Mekong Delta.

The plants are targeted to receive their first gas flow in late 2026, the oil and gas giant said Thursday at a ceremony held to receive the projects from state utility Vietnam Electricity (EVN).

The O Mon 3 and O Mon 4 plants, with a capacity of 1,050 MW each, were assigned to EVN in 2016 under the national power development plan VII (PDP VII). The two projects, also added to PDP VIII, are in the preparatory investment phase.

With the EVN facing challenges in executing the projects, Vietnam's Prime Minister Pham Minh Chinh transferred the implementation to Petrovietnam earlier this month.

Petrovietnam said that based on its experiences in implementing the 1,200 MW Thai Binh 2 thermal power plant, it was capable of meeting the new projects’ deadlines.

It also highlighted its experience in successfully implementing and operating combined cycle power plants with a total capacity of 2,700 MW.

The O Mon 3 and O Mon 4 Power Plant projects are components of the Block B - Gas-to-Power project chain, which includes upstream projects (gas fields), midstream projects (gas pipeline projects), and downstream projects (power plants).

In March, EVN, then the project investor, expressed concerns about the O Mon 3 project's progress, citing problems related to official development assistance (ODA) procedures.

The VND25.24 trillion ($1.07 billion) project, part of the mega Block B gas project in the Mekong Delta city of Can Tho, has received VND9.93 trillion ($419.26 million), or 40% of the investment, in reciprocal capital from EVN. The other 60% is to be sourced from Japanese ODA.

However, EVN said no domestic commercial banks meet the conditions to be an on-lending agency for the ODA loans, which must also bear credit risks as required by the Ministry of Finance.

In May, concerned ministries asked the Prime Minister to transfer the two delayed gas-fired power projects in the Mekong Delta from EVN to PVN.

Block B, 300 kilometers away from the southernmost province of Ca Mau, is expected to supply 5.06 billion cubic meters of gas annually for the 3,810-MW O Mon power complex, featuring the O Mon 1, 2, 3, and 4 power plants. Petrovietnam has pledged to deliver the first gas flow from Block B in Q4/2026.