Vietnam Electricity to make coal-to-LNG switch for $2.1 bln power plant

State utility Vietnam Electricity (EVN) received an in-principle approval for its LNG-fired Quang Trach II thermal power project in the central province of Quang Binh on Thursday.

Per the in-principle approval in 2021, Quang Trach II is a 1,200 MW coal-fired power plant with an investment of VND48,156 billion ($1.95 billion at the current exchange rate).

After the national power development plan VIII (PDP VIII) was issued in May 2023, EVN proposed converting the project into an LNG-fired power plant.

With the latest approval, Quang Trach II has an investment of VND52,490 billion ($2.12 billion) and a capacity of 1,500 MW, using the combined cycle gas turbine (CCGT) technology. The investment includes an LNG wharf.

The coal-to-LNG switch aims to follow the country’s policy of diversifying power sources and prioritizing new, renewable, clean energy while reducing coal-fired power and importing materials for power plants, said EVN.

EVN strives to complete the project's feasibility study in the first quarter of 2025, begin construction in Q3/2025, run the first turbine in Q4/2028, operate the second turbine in Q1/2029, and complete the project in 2030.

Once operational, the power factory can supply nine billion kWh a year, aiding the growth of Quang Binh province and the north-central region of Vietnam.

Speaking at the investment policy adjustment granting ceremony, Quang Binh Vice Chairman Phan Phong Phu said the project can contribute VND1.5 trillion ($60.6 million) to the privincial budget annually and employ many locals. He urged provincial agencies to work with the investor to meet the project deadlines.

Vietnam is yet to have a power plant that exclusively uses LNG as fuel. Some gas-fired power plants like Phu My 3, Phu My 2.1, and Phu My 4 switched to using LNG as fuel from April onwards.

In July, PV Power, a subsidiary of state-owned Petrovietnam, announced that the $1.4-billion Nhon Trach 3 and Nhon Trach 4 LNG-to-power complex, the first of its kind in Vietnam, had basically completed related land lease tasks and was preparing to “first fire” one of the plants this month.