Vietnam’s first LNG power plants may incur $38 mln loss in 2026: broker

Vietnam’s first LNG-to-power plants, Nhon Trach 3 and Nhon Trach 4, are expected to post a combined loss of VND1 trillion ($37.98 million) in 2026, their first full year of commercial operations, predicted Vietcap Securities.

Inaugurated on Sunday in the southern province of Dong Nai, the two LNG-fired plants are scheduled to begin full commercial operations on January 1, 2026. Nhon Trach 3 unit was earlier certified for commercial operation on November 19.

Developed by PV Power, a subsidiary of state-owned PetroVietnam, the projects mark Vietnam’s first power plants to run on imported LNG. They were built over about three and a half years from May 2022 to December 2025, with Lilama and Samsung C&T as EPC contractors.

Despite expected losses in 2026, the projects may generate a profit of about VND424 billion ($16.1 million) by 2028, supported by a high efficiency rate of around 62% and relatively low fuel consumption, Vietcap Securities estimated.

Once fully operational, the Nhon Trach 3 and 4 complex is expected to generate annual revenue of roughly VND25 trillion ($949.38 million) and contribute about VND1 trillion (37.98 million) a year to Dong Nai’s provincial budget, according to project disclosures.

The two plants will play a critical role in Vietnam’s energy security through 2030, particularly as renewable capacity expands and several other LNG projects face delays. With a combined capacity of 1,624 megawatts, the plants are designed to supply more than nine billion kilowatt-hours of electricity annually.

The projects also stand out for their relatively low capital cost, estimated at about $0.86 million per megawatt, or roughly $1.4 billion in total, below that of many gas- and coal-fired power plants in Vietnam.

The plants form a key link in the Thi Vai-Nhon Trach LNG value chain, providing baseload power for southern Vietnam. They use advanced gas turbine technology from General Electric and are designed to meet strict emissions standards, with the flexibility to co-fire hydrogen at up to 50% and a long-term pathway toward full hydrogen use.

Nhon Trach 3 and 4 are also Vietnam’s first power projects to secure more than $1 billion in international financing without a government guarantee. As of the third quarter of 2025, PV Power reported construction-in-progress costs of about VND23.66 trillion ($898.41 million) for the two plants.

Under the adjusted Power Development Plan VIII (PDP VIII), Vietnam aims to add nearly 37,500 MW of new gas-fired power capacity, with LNG accounting for around 60%. However, many projects are facing challenges in securing output offtake agreements to ensure stable cash flows, as well as in planning long-term fuel supply volumes and prices.