PV Power to construct LNG plants in southern Vietnam

PV Power, a subsidiary of Petrovietnam, plans to start construction of Nhon Trach 3 and 4 liquefied natural gas (LNG)-fired power plants in Dong Nai province on April 30.

The groundbreaking ceremony will coincide with the celebration of Vietnam's Reunification Day, possibly with the attendance of the Prime Minister, Chairman Ho Hong Ky told the company's shareholder meeting on Tuesday.

The first turbine is set to be operational in 30 months (2024) and the second in 36 months (2025), annually providing about 9 billion kWh to the national electricity grid.

PV Power on March 14 awarded a $940 million contract to build Nhon Trach 3 and 4, Vietnam's first LNG-fueled power plants, to a consortium of Samsung C&T Corp and Lilama Corp, a leading Vietnamese construction company.

With a total capacity of 1,500 megawatts and capitalized at $1.4 billion, Nhon Trach 3 and 4, located in Nhon Trach district, are important national projects under Vietnam’s power development plan VII. The government has assigned PV Power as investor.

PV Power also plans to organize periodic repairs on certain power plants in 2022, including Ca Mau 1, Nhon Trach 1 and 2, Dakdrinh, Hua Na, and the first turbine of Vung Ang 1.

The firm’s revenue in 2021 reached VND25,293 billion ($1.1 billion), down 16.3% from 2020, completing 89% of its plan. Profit after tax reached $89.34 million, 55% higher than expected.

PV Power decided to inject up to 90.7% of its 2021 profit after tax into the development investment fund, instead of paying dividends.

The company aims to achieve a revenue of $1.05 billion in 2022, and a profit after tax of $32.35 million, respectively.

PV Power in March approved the plan to divest from Viet Lao Power JSC and EVN International JSC. In particular, the company’s 8% stake in Viet Lao Power, worth $13.41 million, will be divested mostly in April and May, with Rong Viet Securities the consulting agency.