In December 2023, Vietnam granted an investment license to a consortium comprising Tokyo Gas, Kyuden International, and Truong Thanh Group for the construction of an LNG-fired power plant in the northern province of Thai Binh, with an estimated cost of around USD 2 billion. The 1.5-gigawatt power plant is one of a fleet of 13 LNG-fired plants with a combined capacity of 22.4 GW that Vietnam aims to develop by 2030.
The proposed project, situated in Thai Binh province, aligns with Vietnam’s draft power development plan VIII for the 2021-2030 period, with a vision extending until 2045. This plan, commonly referred to as PDP VIII, is currently pending approval.
Upon the promulgation of PDP VIII, projects outlined in the plan will proceed to select investors for execution, typically through a bidding process. The critical factor for LNG-to-power initiatives lies in securing a power purchase agreement (PPA) from the state utility Vietnam Electricity (EVN), as this is essential for obtaining financing.
In November 2022, Tokyo Gas and Marubeni joined forces with PetroVietnam Power and Colavi to establish Quang Ninh LNG Power as part of their plans to build an LNG-to-power project in Vietnam’s Quang Ninh province.
In 2023, Vietnam officially became an LNG importer, marked by the launch of Thi Vai LNG import terminal. PetroVietnam Gas, a unit of state-owned PetroVietnam, disclosed that the LNG import facility consists of one 180,000-cbm LNG tank, a jetty, and a regas area.
(Sources: The Star, LNG Prime)