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According to separate statements by PV Gas and EVN, the duo signed the MoU on October 4.
The deal includes LNG supply from the Vung Ang 1 LNG terminal to the Quang Trach II LNG power plant.
EVN said the MoU “aims to maximize the capabilities and take advantage of each party’s strengths in supplying LNG from the Vung Ang LNG terminal to the Quang Trach II LNG power plant project following the schedule and implementation plan of Power Development Plan VIII.”
The utility and PV Gas did not provide further details regarding the MoU.
Quang Trach II LNG power plant
EVN just received approval for its Quang Trach II LNG power plant in the province of Quang Binh.
In 2021, Vietnamese government approved the 1200 MW Quang Trach II coal-fired power plant with a total investment of 48,156 billion Vietnamese dong ($1.96 billion).
However, EVN proposed after that to amend the project and to switch from coal to LNG.
The project was included in the national power development plan VIII (PDP VIII) issued in May 2023.
The Quang Binh government approved the adjustment of the investment policy in a decision dated September 4, 2024.
The Quang Trach II power plant will have a capacity of 1,500 MW, using the combined cycle gas turbine (CCGT) technology. It will feature two units with a capacity of 750 MW.
EVN said the project also includes the construction of an LNG jetty.
The total investment will reach 52,490 billion Vietnamese dong ($2.12 billion).
EVN expects to complete the project’s feasibility study in the first quarter of 2025, and to start construction in the third quarter of 2025.
The power utility aims to launch the first unit in the fourth quarter of 2028, the second unit in the first quarter of 2029, and to complete the project in 2030.
Besides this deal with PV Gas, EVN signed a power purchase agreement (PPA) with PetroVietnam Power, a unit of state-owned PetroVietnam, for the Nhon Trach 3 and Nhon Trach 4 LNG power plants.
PV Power said this contract is an important step for launching commercial operations at the two LNG power plants.
Vietnam’s first LNG power plants will have a total capacity of 1.5 GW.
PV Gas
Earlier this year, PV Gas, the operator of the Thi Vai LNG terminal, signed a deal to supply 70,000 tons of LNG to EVN.
This deal followed a government directive dated February 14 on ensuring electricity supply, and a sufficient amount of coal and gas for power generation.
It supported EVN during the peak dry season of 2024.
PV Gas launched its Thi Vai LNG terminal on October 29, 2023, after nearly 4 years of construction and commissioning.
This is Vietnam’s first LNG import terminal.
In July 2023, LNG giant Shell delivered the commissioning LNG cargo to the terminal from Indonesia’s Bontang LNG plant.
PV Gas has received five LNG cargoes at the facility so far and recently issued a new spot LNG cargo tender for delivery in October.
Besides Shell, PV Gas received cargoes from a unit of France’s TotalEnergies, QatarEnergy LNG, previously known as Qatargas, and PetroChina.
PV Gas also expressed its interest in LNG supplies from US LNG exporting giant Cheniere.
The Thi Vai LNG import facility consists of one 180,000-cbm LNG tank, a jetty, and regas area.
The terminal has a capacity of 1 mtpa in its first phase, but PV Gas plans to boost the capacity to 3 mtpa in the next stage.
In addition to this facility, the Cai Mep LNG terminal, located in Vung Tau district in South Vietnam, is expected to be launched later this year.