Second LNG power purchase agreement signed in Vietnam
State utility Vietnam Electricity (EVN) and Hiep Phuoc Power Company Limited have signed a power purchase agreement (PPA) for the Hiep Phuoc LNG Power Plant – Phase 1 in Ho Chi Minh City, the second of its kind in Vietnam.
The first LNG PPA in the country was inked in 2024 by EVN Electric Power Trading Company and PV Power, a subsidiary of state-owned Petrovietnam, for the Nhon Trach 3 and Nhon Trach 4 power plants in the southern province of Dong Nai.
A ceremony was held in HCMC on Thursday to mark both the signing and the ground-breakinkg of the Hiep Phuoc LNG Power Plant – Phase 1, located in Hiep Phuoc commune, about 25 m from the city center.
Representatives of Vietnam Electricity (EVN) and Hiep Phuoc Power Company Limited sign the power purchase agreement for Hiep Phuoc LNG Power Plant Project – Phase 1 in Ho Chi Minh City on March 26, 2026. Photo courtesy of EVN.
This is the first LNG PPA implemented under Government Decree No. 56/2025/ND-CP dated March 3, 2025, amended and supplemented by Decree No. 100/2025/ND-CP dated May 8, 2025, which sets out incentives for power plants using imported LNG.
The Hiep Phuoc LNG Power Plant – Phase 1 is a national key project developed by Hiep Phuoc Power Company Limited under the build-own-operate (BOO) model.
With a price tag of about VND18.91 billion ($718 million) and an installed capacity of 1,200 MW, the plant will use gas turbines manufactured by Germany’s Siemens, designed to maximize efficiency and reduce emissions.
Speaking at the Thursday ceremony, the two sides stressed that the signing of the PPA and the ground-breaking of the project not only underscore a strong commitment to developing cleaner and more flexible power sources, but also contribute to ensuring national energy security amid rapidly rising electricity demand.
Slated to come online in 2028, the Hiep Phuoc LNG Power Plant – Phase 1 is expected to supply more than 7 billion kWh of electricity annually to the national grid.
Vietnam has put the Nhon Trach 3 and 4 LNG power plants into commercial operation. With a combined capacity of 1,624 megawatts, the plants are designed to supply more than 9 billion kWh of electricity annually.
Under the adjusted Power Development Plan VIII, the country aims to add nearly 37,500 MW of new gas-fired power capacity, with LNG accounting for around 60%.
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