Vietnam targets 'fair' prices for gas-fired power, prepares 'first gas' from Block B in 2026

As Vietnam prepares to receive “first gas” from Block B-O Mon gas-to-power project in 2026, project participants should negotiate a “suitable” power price on the basis of “fair share of risks and benefits” for the State, businesses, and the people, says Prime Minister Pham Minh Chinh.

He made the request last week at a cabinet meeting on major projects of state-owned Petrovietnam (PVN) and Vietnam Electricity (EVN).

The Block B – O Mon gas-to-power project is a mega and long-delayed project, with an investment of $12 billion.

In March, Petrovietnam and its subsidiaries signed deals with Japanese and Thai partners to buy gas from the project.

The exploited gas, 433 kilometers off the coast of southern Vietnam, will be transported to the Mekong Delta city of Can Tho for the 3,810-MW O Mon power complex, which comprises the O Mon 1, O Mon 2, O Mon 3, and O Mon 4 power plants.

The project has an annual designed capacity of 22 billion kWh. The O Mon 1 power plant is already operational, while the O Mon 2, 3 and 4 power facilities are set to begin operations in 2026, 2027, and 2028, respectively.

At the meeting, PM Chinh also noted that ensuring power supply is essential to attract foreign investors amid global FDI declines.

For 2025, Vietnam needs to increase the power capacity by 2,200-2,500 MW as electricity demand is estimated to go up 12-13%, he said, adding that this target is not a big issue.

The government leader also requested adequate supply of coal and gas as fuel for power generation, with a focus on better exploitation of domestic coal, study of coal import from Laos, and lesser coal import from other sources.

For 2026-2030, he asked relevant agencies and the Ministry of Industry and Trade to draft plans to meet the electricity demand, which can increase by 12-14%. A gradual shift from coal-fired power to clean energy per Vietnam’s COP26 commitment is a focus, Chinh stressed.