Vietnam should open up wholesale electricity market: Long Son petrochemical complex

Vietnam should open up the wholesale electricity market mechanism, Long Son Petrochemicals Complex (LSP), invested by Thailand's The Siam Cement Group (SCG), proposed on Monday.

Representatives of the $5.4-billion complex delivered the suggestion to Nguyen Duc Hai, Vice Chairman of the National Assembly, the country’s highest legislative body, during his site visit.

LSP representatives clarified that electricity supplies from Ba Ria-Vung Tau province had experienced 12 disruptions recently, negatively impacting the complex’s operation three times.

The wholesale electricity market mechanism would help ensure stable power supplies, LSP argued. The complex also suggested progress be accelerated at the Long Son electricity center project implementation in the southern coastal province.

LSP deputy CEO Kitti PhadungChiwit emphasized the firm expected stable electricity supplies without disruptions and the wholesale electricity market mechanism would allow LSP to purchase power directly from suppliers, hence improving the supply.

The Vietnam Wholesale Electricity Market (VWEM) mechanism was prepared in 2016-2018 and entered official operation in 2019. However, it was still in its initial phase with a few buyers, namely state utility Vietnam Electricity (EVN) and EVN's subsidiaries. In the long-term plan, the VWEM will feature non-EVN units, built-operate-transfer (BOT) power plants, and small and medium hydropower plants.

Addressing the meeting, National Assembly Chairman Hai appreciated LSP’s suggestion, saying he would put the idea under consideration.

The Siam Cement Group (SCG) started construction of the $5.4 billion Long Son Petrochemicals Complex in Ba Ria-Vung Tau in the fourth quarter of 2018. SCG’s Long Son Petrochemicals Complex is a key development in Vietnam’s oil and chemicals sectors. Therefore, in 2019, the project was placed on the list of projects supervised by the Vietnamese government’s Council for State Inspection of Construction Works.

The project is nearly complete and is slated for a full trial run in September. At full capacity, its annual output will include 1.4 million tons of polyethylene (PE) and polypropylene (PP).

Vietnam now has two operational oil refineries - Nghi Son Refinery and Petrochemical complex in Thanh Hoa province, and the Binh Son Refining and Petrochemical (also called Dung Quat) in Quang Ngai province, both in the central region.

Ba Ria-Vung Tau province is also home to the Long Son electricity center. The $3.78 billion LNG-fired power facility has a capacity of 1,500 MW. It is set to enter operation in 2025-2026.