Investors of Hai Lang power plant urges retaining original schedule

The group of investors of the $2.35-billion Hai Lang power plant commenced the groundbreaking ceremony in mid-January

The group of investors of the first phase of the Hai Lang liquefied natural gas (LNG) power plant – a consortium of Vietnamese conglomerate T&T Group, Korea Gas Corporation (KOGAS), Hanwha Energy Corporation, and Korea Southern Power (KOSPO) – has been insisting for a while to start commercial operation of the power plan in 2026-2027, instead of 2040 as mentioned in the draft PDP8.

At the Vietnam Business Forum (VBF) in mid-February, the Korean Chamber of Commerce in Vietnam (KoCham) emphasised this wish on behalf of the investor group again.

According to the investors, the project's schedule that was approved in the PDP7 (2026-2027) has now been changed to 2040 in the latest draft PDP8, which would cause serious issues for the group of investors.

Kim Han Yong, chairman at KoCham in Vietnam said at the VBF, “We understand that the Hai Lang plant is located quite far from the most needed electricity demand, thus the Ministry of Industry and Trade is concerned about the cost of electricity transmission.”

However, according to KoCham, the project has points that are suitable for Vietnam's development interests. It would not require expansion of the existing 500kV line and has an optimal location as the area would ensure the deep-water level necessary for the porting of LNG carriers, which is quite rare in Vietnam.

Besides this, KOGAS can provide LNG most economically to Vietnam thanks to its LNG purchasing power equivalent to 9 per cent of the total global LNG trade (35 million tonnes per year).

Meanwhile, KOSPO has the largest number of LNG power plants in South Korea and an excellent power generation capacity, related operating technology capability, and key equipment.

“Thus, we hope that the Vietnamese government would pay attention to creating conditions for the project to be implemented as planned originally,” Kim said.

In mid-January, the investors organised the groundbreaking ceremony to start the construction of the first phase of the power plant in Hai An commune in the central province of Quang Tri's Hai Lang district.

The project, which spans 120ha, will have a capacity of 1,500MW and will be able to supply 8.25 billion kWh to the national grid each year.