Vietnam’s first LNG power plants to begin commercial operation this year

Nhon Trach 3 and 4, Vietnam’s first LNG-fired power plants, are expected to begin commercial operations this year, according to a new ministerial decision.

The Ministry of Industry and Trade on May 30, 2025 issued Decision No.1509/QD-BCT, approving a scheme for implementing the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Adjusted Power Plan VIII).

Accordingly, the Nhon Trach 3 plant, which was connected to the national grid on February 5, is scheduled to start commercial operations in August, while Nhon Trach 4 is expected to follow in November. Both plants are located in the southern province of Dong Nai, a neighbor of Ho Chi Minh City.

The two factories, developed by PV Power (HoSE: POW) - a subsidiary of state-owned giant Petrovietnam with a total investment of $1.4 billion, are designed to supply between nine and 12 billion kWh of electricity annually, enough to meet 60% of Dong Nai’s energy demand.

According to the Adjusted PDP VIII, Vietnam is projected to have 22,524 MW in installed LNG power capacity by 2030.

Besides, 11 projects are expected to be operational between 2028 and 2029, including the Quang Ninh LNG (1,500 MW); Thai Binh LNG (1,500 MW); Quang Trach II LNG (1,500 MW); Hai Lang LNG Phase 1 (1,500 MW); Hiep Phuoc LNG Phase 1 (1,200 MW), Long An I LNG (1,500 MW); Son My I (2,250 MW); Son My II (2,250 MW); Nghi Son LNG (1,500 MW); Ca Na LNG (1,500 MW); and Quynh Lap LNG (1,500 MW).

Projects projected to come online later include Hai Phong LNG Phase 1 (1,600 MW); Hiep Phuoc LNG Phase 2 (1,500 MW); Long Son LNG (1,500 MW); Long An II LNG (1,500 MW); Hai Phong LNG Phase 2 (3,200 MW); Vung Ang III LNG (1,500 MW); and Quang Trach III LNG (1,500 MW).

Most LNG projects involve foreign partnerships or are open to bidding.

To support LNG power development, Vietnam has cut import duties on LNG from 5% to 2%. The country will guarantee an offtake of at least 65% of annual electricity output from projects using imported LNG power for up to 10 years.

U.S. LNG imports have also been identified by the Prime Minister as a strategic measure to reduce Vietnam’s trade surplus with the U.S. amid tariff turmoil.