Russia’s Gazprom exits $297 mln gas-fired power project in central Vietnam

Russia’s Gazprom has withdrawn from a planned $297 million gas-fired power plant in central Vietnam after more than five years of inactivity, prompting authorities to seek alternative investors to keep the project aligned with the country’s power development plan.

The 340 MW Quang Tri gas-fired power project was assigned in 2020 to Gazprom International, a subsidiary of energy giant Gazprom, under the build-operate-transfer (BOT) model.

Located in the Southeast Quang Tri Economic Zone in Quang Tri province, the project was designed as a 42-hectare combined-cycle gas turbine plant and expected to use natural gas from the offshore Bao Vang field, supplemented by imported gas supplies.

The plant had initially been scheduled to begin operations in 2023-2024 and was subsequently incorporated into Vietnam’s adjusted eighth national power development plan (PDP VIII), with commercial operations targeted for the 2026-2030 period.

However, despite receiving approval more than five years ago, the Russian giant had not completed the required investment procedures under Vietnam’s public-private partnership regulations.

According to documents from Quang Tri’s Department of Industry and Trade, Gazprom EP International B.V. informed local authorities in March 2026 that its parent company had determined further exploration of the Bao Vang gas field and development of the integrated gas-to-power project were no longer appropriate under current conditions.

As a result, the company formally declined to proceed with the development of the Quang Tri combined-cycle gas power plant.

The withdrawal comes as Vietnam seeks to expand gas-fired generation capacity to support growing electricity demand while reducing reliance on coal.

PVEP emerges as potential successor

Gazprom indicated that Petrovietnam Exploration Production Corporation (PVEP), its partner in Vietnam offshore exploration blocks 111/04, 112 and 113, has expressed interest in continuing exploration activities at the Bao Vang field. PVEP has also signaled interest in taking over development of the Quang Tri power project.

The Quang Tri provincial government has requested guidance from Vietnam’s Ministry of Industry and Trade on terminating Gazprom’s investor status and restructuring the project to ensure it remains on schedule under the PDP VIII.

The project was expected to serve as a catalyst for industrial and infrastructure development in Quang Tri, including port facilities and transport networks in the Southeast Quang Tri Economic Zone.

The future of the project is closely linked to offshore gas discoveries in the region.

In addition to Bao Vang, Quang Tri is located near the offshore Ken Bau gas field in the Red River Basin. Italian energy company Eni previously estimated Ken Bau contains between 7 trillion and 9 trillion cubic feet of natural gas in place and between 400 million and 500 million barrels of associated hydrocarbons.

Under PDP VIII, the Ken Bau field could support between 4,000 MW and 6,000 MW of gas-fired power generation. However, appraisal drilling campaigns have not yet confirmed commercial development plans, pushing any large-scale gas-to-power development to the 2031-2035 period.