First Of Several Lng-Fueled Power Plants Comes Online In Vietnam

PetroVietnam Power (PV Power), a subsidiary of state-owned PetroVietnam, said it has started initial operation of the first of two 812-MW LNG-fired units at its Nhon Trach power plant, located in Dong Nai province, near Ho Chi Minh City in southern Vietnam.

The project is part of the first power plant in Vietnam to be built specifically to be powered by liquefied natural gas (LNG). The start of Unit 3 at Nhon Trach, announced by PetroVietnam—also known as Vietnam Oil And Gas Group—on Jan. 11, will be followed by the start-up of Unit 4 over the next year. PetroVietnam in October of last year secured more than $520 million in financing for development of the two units, which the company said will represent an investment of almost $1.4 billion.

Nhon Trach 3, which officials said is about 95% complete, is expected to enter full commercial operation later this year.

Vietnamese officials said some gas-fired power plants in Vietnam, including Phu My 3, Phu My 2.1, and Phu My 4, used LNG as fuel for brief periods in the past year.

PV Power in October of last year signed a power purchase agreement with a subsidiary of state utility Vietnam Electricity, known as EVN, for the output of the Nhon Trach 3 and Nhon Trach 4 power plants. PV Power and PV Gas, another arm of PetroVietnam, are currently negotiating a gas sales agreement for long-term gas supply for the LNG-fired power plants.

Members of the operations staff of Unit 3 at the Nhon Trach power plant in Vietnam celebrate the facility’s “first fire” during a ceremony on Jan. 11, 2025. Source: PV Power

International banks Citi and ING led the financing for the project. PetroVietnam Corp. CFO Nguyen Duy Giang said, “We appreciate Citi and ING’s support and partnership over the past few years to secure the $521.5 million loan towards the Nhon Trach 3 and 4 power plants. Nhon Trach 3 and 4 … are key national projects and will help meet the growing demand for power in the country. The projects will open a new chapter in the formation and development of the LNG project chain in Vietnam.”

“Citi has been working with PV Power to support this initiative since 2020 and jointly provided a $300 million short-term loan,” said Pham Huu Hai, Citi Vietnam’s corporate banking head and Citi Hanoi’s branch director said. “This project is a driving force to promote economic development and will reduce the power shortage in the country’s commercial hub in South Vietnam.”

The new units will use equipment from GE Vernova. “GE Vernova’s Financial Services played a crucial role in securing the competitive ECA financing for PV Power and the Nhon Trach 3 and 4 power plants, illustrating our commitment to supporting Vietnam’s energy security,” said Marco Appolloni, SVP, GE Vernova’s Financial Services business.

A second LNG-fired facility in Vietnam is in the planning stage. Thai Binh LNG Power, a joint venture among Japan’s Tokyo Gas, Kyuden International Corp., and Vietnam’s Truong Thanh Vietnam Group, has said that its $2 billion LNG Thai Binh power plant project in Vietnam’s Thai Binh province should complete its feasibility study by the middle of this year, with construction set to begin by year-end. Commercial operation of the Thai Binh station is expected by 2030.

Government data shows that gas-fired generation accounts for just less than 10% of Vietnam’s installed power generation capacity. Coal-fired power plants account for about 30% of the country’s electricity production.

Vietnamese officials have said that the country plans to build at least 15 LNG-fired power plants by 2035 with combined generation capacity of more than 22 GW. Officials said the LNG-fueled facilities would account for about 15% of the country’s total power generation mix.

PetroVietnam, in addition to the new unit at Nhon Trach, manages and operates four gas-fired power plants, two coal-fired power plants, and two hydropower plants with a total installed capacity of 5,405 MW, according to the company. PetroVietnam said its units account for as much as 12% of the country’s electricity output.

Vietnam’s longest-operating LNG terminal is located at Thi Vai. It has a capacity of 1 million metric tons per year. A second import facility, the Hai Linh Co. Ltd.’s Cai Mep LNG terminal, also is located in the southeast province of Ba Ria-Vung Tau. That terminal, which received its export-import operating license in August of last year, has capacity to move 3 million metric tons annually.

—Darrell Proctor is a senior editor for POWER.