Vietnam’s first liquefied natural gas (LNG) power cluster, constructed at a cost of US$1.4 billion, is set to commence commercial operations on January 1. The Nhon Trach 3 and 4 LNG-fired plants are located in the southern province of Dong Nai and were launched by state-owned PV Power on a recent Sunday.
The two plants, which are designed to utilize imported LNG, boast an annual capacity of generating nine billion kilowatt-hours of electricity. The testing phase of the plants has been concluded, and they have received the necessary licensing to supply power to the grid, according to Nguyen Duy Giang, the Deputy General Director of PV Power, a subsidiary of PetroVietnam.
Vietnam Electricity has pledged to purchase a minimum of 65% of the plants’ power output for a span of 10 years. This agreement is expected to yield revenues of approximately US$950 million (VND25 trillion) each year for the power plants. Additionally, their technology is designed to facilitate the use of hydrogen, exclusively if required.
In a statement, Prime Minister Pham Minh Chinh recognized the significant role that the LNG power cluster plays in bolstering national energy security. He further encouraged the exploration and development of clean energy sources as a means of powering the country’s proposed investments in data centers, digital transformation initiatives, and semiconductor plants.
As part of Vietnam’s revised power development plan, which was approved in April, LNG-to-power capacity is set to reach 22.5 gigawatts by 2030, a significant increase from less than 1 GW at present. This capacity would account for approximately 10% of the nation’s power mix.
What is the expected annual capacity of the Nhon Trach 3 and 4 LNG-fired plants?
The plants are expected to generate nine billion kilowatt-hours of electricity annually.
What is the financial outlook for these plants?
Vietnam Electricity has committed to buying at least 65% of the power output from these plants for 10 years, which could generate about US$950 million in revenue each year.
What contribution is expected from LNG-to-power capacity as per Vietnam’s revised power development plan?
According to the revised plan, by 2030, LNG-to-power capacity is projected to reach 22.5 gigawatts, contributing roughly 10% to the country’s power mix.
