Ninh Thuan to select investors for LNG power project via international bidding

Ca Na Port is important for Vietnam's energy development

As Vietnam has yet to deploy any liquefied natural gas (LNG) power project, Ninh Thuan has been greenlighted to select investors for its LNG Ca Na Power Centre project through international bidding.

In light of the decision of Ninh Thuan People’s Committee, the provincial Department of Industry and Trade has been tasked with inviting bidders and holding the bidding to select an investor to implement the first phase of the 1,500MW LNG Ca Na Power Centre in accordance with existing regulations on bidding, particularly Article 10 of governmental Decree No.25/2020/ND-CP dated February 28, 2020.

During implementation, it needs close cooperation and reach a consensus with relevant state bodies, including the Ministry of Industry and Trade, Ministry of Planning and Investment, and Electricity of Vietnam, in regards to criteria on choosing investors to ensure bonafide competition and the chosen investor can best implement the project in terms of financial capacity, experience, management expertise, and execution technology.

Also according to the decision, five investor consortiums have been recognised to basically meet the selection criteria for project execution. These include the Korea Consortium of Hanwha Energy Corporation, Korea Gas Corporation, and Korea Southern Power Co., Ltd.; Gulf MP Co., Ltd.; Jera Company Inc.; the consortium of Total Gaz Electricite Holding France, Novatek Gas & Power Asia Pte., Ltd., PetroVietnam Power Corporation (PV Power), and Siemens Energy AG; and Trung Nam Construction Investment JSC.

Earlier, in April 2020 the prime minister gave the nod to add the first phase of LNG Ca Na Power Centre to the revised Power Development Plan VII (PDP7), going into operation during 2025-2026.

The successive phases will be later considered in the national power development for 2021-2030, with vision towards 2045 (PDP8).

To push up the pace, the government has assigned the MoIT to preside over and team up with relevant management agencies to give further instructions about contents such as developing the associated LNG depot and terminal, or how the added power centres would be connected to the national power grid.

The instructions also refer to setting the LNG power price, meeting general requirements for transparency, competitiveness, and the general efficiency of the national power system.

Ninh Thuan People’s Committee was tasked to preside over and cooperate with relevant management agencies to hold bidding to select investors, ensuring publicity, transparency, and compliance with regulations, as well as the best efficiency for the country.

Then in December 2020, Ninh Thuan rendered a letter of invitation to the project, with the deadline for applicants set at January 14, 2021.