Vietnam OKs $2.3 billion LNG-to-power project

Vietnam has given the green light to a new LNG-to-power project in the central province of Quang Tri, as it looks to meet the country’s growing power demand.

The consortium which would build the Hai Lang LNG-to-power project includes one Vietnamese and three South Korean firms.

LNG importing giant and terminal operator Kogas, power firm Kospo, as well as energy solutions provider Hanwha are the developers from South Korea. Vietnamese investor and project developer T&T Group is the only firm from the Southeast Asian country.

The partners received investment approval from the local government for the LNG power plant in Hai Lang district during a ceremony on October 7, T&T Group said in a statement.

As part of the first phase of the LNG power plant, the partners would build a 1,500 MW facility with an expected start of commercial operations in 2026-27. The project would include an import terminal capable of receiving about 1.5 million tonnes of LNG per year, the statement said.

This phase would cost more than $2.3 billion to build, T&T Group said, adding that it would contribute 40 percent of the investment capital and the three Korean firms 60 percent.

Second phase as well

In addition, there are also plans to expand the facility with 3,000 MW in the future.

If built, both of the phases could cost about $4.8 billion.

Several players, including Delta Offshore, are planning to build LNG-to-power projects in Vietnam in order to meet the country’s growing power demand.

Russia’s Novatek also said it had established an office in Hanoi as it looks to supply LNG to Vietnam.

PetroVietnam Power recently signed a deal with two local banks to help arrange capital for its planned LNG-powered plants while PetroVietnam Gas has also signed a contract with US energy firm AES to build the Son My LNG import terminal in Vietnam.

The government previously said that Vietnam would start importing LNG in 2022.

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