Liquefied natural gas, a solution to Vietnam’s energy shortage, presents new opportunities for power producers and investors alike.
|PV Power chairman Ho Cong Ky addressing the meeting with its partners and advisors |
PetroVietnam Power Corporation (PV Power) last week met with advisors, partners, and local and foreign banks to introduce its latest project series on liquefied natural gas (LNG). Attendees included senior representatives from the Ministry of Planning and Investment, the Ministry of Industry and Trade, and Vietnam’s state-run oil and gas group PetroVietnam.
PV Power CEO Nguyen Xuan Hoa stated that between 2018 and 2022, PV Power will focus on building the Nhon Trach 3 and 4 thermal power plants in Ong Keo Industrial Zone in the southern province of Dong Nai, while its sister company, PV Gas, takes responsibility for LNG in its Thi Vai storage terminal.
Based on the approved plan, the Thi Vai storage terminal will begin operations in the second quarter of 2022, while the Nhon Trach plants will begin operations in late 2022 or early 2023. Hoa hoped that the two projects would pave the way for maturation of Vietnam’s LNG industry, which is still in its infancy.
“The Nhon Trach 3 and 4 plants are the first power factories in Vietnam to use imported LNG,” Hoa said. “These two plants will help the southern region of Vietnam combat the chronic problem of energy shortage and diversify sources of power.” He added that LNG could gradually reduce the use of and eventually replace coal, which is known to cause environmental pollution.
At the meeting, speakers from PV Gas, Poyry, SS&A, and Citibank also gave their thoughts on power projects that use imported LNG, providing examples and sharing experiences. Topics discussed included how to raise capital for these projects, the right kind of turbines to be used, and how to execute the project smoothly.
As a major shareholder at both PV Gas and PV Power, PetroVietnam promised to do anything in its power to help the two subsidiaries. Nguyen Tien Vinh, a board member at PetroVietnam, emphasised that they would ensure that the two projects will be carried out on time and in sync, as this is crucial to the success of this project.
In March, PV Power announced that the two thermal power plants, which cover an area of 34 hectares, will need VND33.3 trillion ($1.47 billion) of financing. The generation capacity for each plant ranges from 750 to 800 megawatts.