Vietnam's state-owned energy giants EVN, PVN reach LNG supply deal for power plant

PV Gas, the gas arm of Petrovietnam (PVN), and Vietnam Electricity (EVN) on Friday signed a memorandum of understanding on LNG supply for the Quang Trach II LNG-to-power plant in the central province of Quang Binh.

Accordingly, LNG will be delivered from the to-be-built LNG Vung Ang terminal to the to-be-built Quang Trach II power plant in line with the implementation of Vietnam's national power development plan VIII (PDP VIII).

Quang Trach II is a project of state utility EVN. Per authorities' 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 PDP VIII was issued in May 2023, EVN proposed converting the project into an LNG-fired power plant. In September, EVN received an in-principle approval for the LNG-fired Quang Trach II thermal power project.

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

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.

In May, state-owned PVN noted its plans to invest $2.5 billion in LNG facilities in Ha Tinh.

PV Power, the power generation arm of PVN, proposed a $1.5 billion LNG-fired power plant in this central province. The project has a designed capacity of 1,500 MW and can be expanded to reach 4,500 MW.

Meanwhile, PV Gas suggested a $1 billion LNG terminal project in the same province.

The project is scheduled for completion in 2029-2030, with an annual capacity of one-three million tons, in line with the progress of the power plant project. It is set to cover 50 hectares of land and 426 hectares of water.

Both projects will be located in Vung Ang Economic Zone.