PV Gas green-lighted to build $1 bln LNG terminal in north-central Vietnam

The Ha Tinh province People’s Committee has given in-principle approval to the North Central LNG Terminal project, with PV Gas, a subsidiary of state-owned giant Petrovietnam, as investor.

Located in Hoanh Son ward, the project, also called Vung Ang LNG Terminal, aims to supply natural gas for power plants under the Adjusted Power Development Plan VIII (PDP8), including Quang Trach 2, Vung Ang 3, Quang Trach 3, and various industrial users across the region.

The terminal will span approximately 53 hectares of land and 426 hectares of water surface, with a total investment of over VND26.7 trillion (around $1.01 billion). Of this, VND8 trillion will be funded by PV Gas’s equity, while VND18.7 trillion will come from loans and other mobilized sources.

The project features two phases, with the first (2029-2030) having a capacity of 1-3 million tons of LNG per year. In the second (post-2030), the capacity will be expanded based on approved planning and market demand.

The project will operate under a 35-year license, starting from the date of land allocation. PV Gas aims to have the entire project completed and operational by Q4/2029.

Once in operation, the Vung Ang LNG Terminal is expected to create substantial employment, boost local tax revenues, and help accelerate industrialization and economic restructuring in Ha Tinh toward a more industrial- and service-oriented economy.

This terminal is a key component in PV Gas's North-Central-South LNG infrastructure network. It follows the success of the Thi Vai LNG Terminal in the former Ba Ria-Vung Tau province (now part of Ho Chi Minh City after an administrative merger), already operational, with an initial capacity of 1 million tons per year and a total investment of nearly VND7.5 trillion ($283.93 million).

In southern Vietnam, PV Gas is also partnering with AES Vietnam to develop the Son My LNG Terminal in the former Binh Thuan province (now part of Lam Dong province), which carries an investment of over VND32 trillion and a phase 1 capacity of 3.6 million tons per year, expected to be launched after 2027.

In this LNG roadmap, Thi Vai is positioned as the southern LNG gateway, while Vung Ang is set to become the central hub for LNG supply in north-central Vietnam, supporting supply balancing for the north.

In the first half of 2025, PV Gas posted net revenue of nearly VND55.76 trillion ($2.11 billion), up 4% year-on-year, and profit after tax of over VND7.57 trillion ($286.6 million), marking a 27% increase compared to the same period in 2024.