Three of four investors, who are interested in developing the $2 billion Quang Ninh liquefied natural gas (LNG) power project, were weeded out due to failure in meeting the project criteria.
|A joint venture of domestic and international companies was the only one to check out all the boxes for Quang Ninh LNG power project |
According to Quang Ninh People’s Committee, to date, four investors registered to invest in the Quang Ninh LNG power project. They combine with Sojitz Corporation, China Power International Holding Ltd., a joint venture between Jaks Resources Berhad and TNB Power Generation Sdn., Bhd., and the joint venture between PV Power, Colavi JSC, Tokyo Gas, and Marubeni.
The joint venture of PV Power, Colavi, Tokyo Gas, and Marubeni was the only investor to overcome all project requirements to be allowed to complete the dossier for the investment certificate.
Previously, in late 2020, the joint venture signed an MoU to develop the project. The Quang Ninh LNG power project was approved to add in the adjusted Power Development Planning VII.
Along with requirements about financial capacity and experience, there are several other strict requirements for investors.
Tran Viet Ngai, chairman of the Vietnam Energy Association said that one of the challenges for the investor at the Quang Ninh LNG power project is the requirement to start construction in the second quarter of 2022 as well as the commitment to put the project in operation by the third quarter of 2027.
Covering an area of 56 hectares, including 13.38ha offshore, in Cam Pha city, the Quang Ninh LNG power project will include a power plant with the capacity of 1,500MW, gas storage, and an LNG port with an annual capacity of 2.4 million tonnes, as well as relevant infrastructure.
At present, land clearance has yet to be implemented. The investor will be allowed to operate the project for 50 years after receiving the land.