Two multi-billion-dollar LNG power projects restarted in central Vietnam

Two LNG-fueled power projects in Thanh Hoa province’s Nghi Son Economic Zone have been restarted after a period of suspension, expectedly to provide strategic clean power sources for Vietnam's north-central region.

Japanese investor reaffirms commitment

The Nghi Son LNG power project received investment approval in March 2024 and is expected to become one of the key LNG power sources in the region.

The project has a total investment of over VND57 trillion ($2.16 billion) and a designed capacity of 1,500 MW. It is set to cover nearly 68 hectares in Hai Ha commune of the former Nghi Son township (now Nghi Son ward).

Key components include a combined cycle gas turbine plant, an LNG regasification terminal with a capacity of 1.2 million tons per year, LNG storage facilities, and an import terminal.

However, Thanh Hoa province later canceled the international bidding process after two rounds of invitations and extensions failed to attract any investor submissions.

Before the cancellation, five consortiums passed the prequalification stage, including JERA-Sovico (Japan), PV Power-T&T Group, Kogas-Kospo-Daewoo-Anh Phat (South Korea), Gulf Energy (Thailand), and SK E&S (South Korea).

Recently, standing Vice Chairman of the Thanh Hoa provincial People's Committee Nguyen Van Thi met with JERA Energy Vietnam Co., Ltd., the representative of the consortium that had previously proposed the Nghi Son LNG power plant project.

However, during the preparation of project documentation, JERA and its partners encountered numerous difficulties related to investment procedures, electricity price negotiations, implementation under the new law, and especially the lack of a clear mechanism for power purchase agreements (PPAs).

At the meeting, Masashi Tsujimara, CEO of JERA Energy Vietnam, shared the challenges in the investment, construction, and electricity pricing process, noting that the operation date is set before 2030.

The Japanese company affirmed its continued commitment to work with local authorities to accelerate proposal procedures and feasibility assessments to ensure the project’s viability and effectiveness.

Vice Chairman Thi stressed that the Nghi Son LNG power plant holds strategic importance for the province. It is expected not only to supplement the regional power supply for the north-central region but also contribute to Vietnam’s energy transition by reducing reliance on coal-fired power and realizing national commitments to emission reduction and green energy.

Thi welcomed JERA’s goodwill and assigned provincial departments to review the entire project dossier and explore new implementation options, potentially allowing investor designation if special legal conditions are met.

Partnering with foreign firms to restart power project

The Cong Thanh thermal power plant project, also located in the Nghi Son Economic Zone, was initially developed by Cong Thanh Thermal Power JSC, with construction beginning in 2011.

The original plan involved a 600 MW coal-fired plant, with total investment capital of about $1.2 billion. Units 1 and 2 were scheduled to be operational in 2014.

However, 12 years since its groundbreaking, the project remains unfinished. It has since been proposed for conversion from coal to LNG, with an upgraded capacity of 1,500 MW, expanded land use of 197.3 hectares, expected annual output of 9 billion kWh, and total investment rising to $2 billion.

In addition to the Vietnamese developer, several foreign partners have now joined the project, including BP Group, Actis Investment Fund (both from the UK), and GE Group (the U.S.) Their involvement is expected to help resolve challenges related to capital, port facilities, technology, and equipment.

At the end of August 2025, Cong Thanh Thermal Power JSC signed a framework agreement with a consortium comprising Doosan Enerbility (South Korea) and Power Engineering Consulting JSC 2 (PECC2) to implement the Cong Thanh 4,500 MW power plant project (Phase 1: 1,500 MW; Phase 2: 3,000 MW).

Once operational, this project will not only ensure sufficient power supply for Thanh Hoa province but also contribute electricity to major load centers in northern Vietnam. With increasing energy demand, the Cong Thanh 4,500 MW LNG power project is seen as critical to supporting the country's socio-economic development.