PV Gas, PV Power join hands to build LNG port, power plant

PV Gas and PV Power, subsidiaries of state-run energy giant Petrovietnam, have discussed joining hands to build a liquefied natural gas (LNG) port and LNG-fired power plant in central Vietnam.

The two sides will coordinate efforts to secure approval from authorities for this initiative, executives of both firms said at a meeting last week.

PV Gas provided 1.6 billion cubic meters of gas in 2023 to PV Power’s Nhon Trach 1 and 2 power plants in the southern province of Dong Nai. It transports gas for two other power plants, Ca Mau 1 and 2, in the southernmost province of Ca Mau.

The two firms have agreed to sign a contract soon on supplying LNG for the Nhon Trach 1 plant.

To prepare for the trial runs of the Nhon Trach 3 and 4 LNG-fed power plants, they discussed the content of long-term LNG supply contracts.

Nhon Trach 3 and 4, the first LNG-to-power plants in Vietnam under construction, are set to begin commercial operations in November 2024 and May 2025, respectively.

PV Gas took delivery of a LNG batch of 70,000 tons, the first in Vietnam, in July last year. In January this year, it signed a framework contract with the owners of the Nam Du-U Minh field to buy gas from the fourth quarter of 2026.

At their latest meeting, PV Gas and PV Power reached a consensus on supplying gas produced from the field and others in the region for the Ca Mau 1 and 2 plants.

PV Gas, listed on the Ho Chi Minh Stock Exchange as GAS, closed Tuesday’s session up 1.54% at VND79,000 ($3.2) per share. Meanwhile, PV Power, coded POW on the same bourse, closed flat at VND11,850 ($0.48) per share.