IPPToday #204: Vietnam approves 2,250 MW gas-fired power projects
- GE General Electric
- Sembcorp Industries
- EDF Group
- Pacific Corporation
- Sojitz Corporation
- Kyushu Electric Power Co.
- 1,500 MW Nhon Trach-3 and 4 gas-fired power project in Dong Nai province
- 750 MW gas-fired power project in Quang Ngai province
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The Prime Minister of Vietnam has approved the development of two gas-fired power plants in Dong Nai, a province of in the south of the country, which will have a combined capacity of 1,500 MW and cost VND33.3 trillion (US$1.45 billion) to build.
The Nhon Trach 3 and Nhon Trach 4 projects are being developed by PetroVietnam Power Corp, the second largest power producer in Vietnam. The plants are to be built in the Ong Keo Industrial Zone, with the company aiming to commence operations in 2020 and 2021 respectively.
As of last year, PetroVietnam is also involved in gas-fired power projects in Vietnam with GE. The companies signed agreements worth over US$2 billion to develop two combined-cycle gas-fired power plants in Chu Lai, which is located in the Quang Nam province, central Vietnam. The plants will be supplied by the Blue Whale Gas Field, located about 100km east of the Quang Nam coast and thought to contain an estimated 150 billion cubic metres of reserves.
In addition, Sembcorp Industries has signed a memorandum of understanding (MoU) with the People’s Committee of Quang Ngai Province (Quang Ngai PC), through its wholly-owned subsidiary, Sembcorp Utilities, for a gas-fired power project in the province. The MoU covers the allocation of land by Quang Ngai PC to Sembcorp for the development of a 750 MW gas-fired power plant in the Dung Quat Economic Zone.
The project has been in development since March 2017, following the signing of an MoU between Sembcorp and Vietnam’s Ministry of Industry and Trade (MoIT) which established that the power plant would be delivered under a 20-year build-operate-transfer arrangement.
Sembcorp has completed a feasibility study of the plant and has submitted the report to MoIT for review and evaluation.
This news follows the Vietnamese government's approval earlier this month of the EDF Group taking over Engie's role as leader of the consortium developing the Son My 1 project, which involves the construction of a 2000 MW combined cycle gas-fired power plant also in the Quang Ngai province.
EDF is developing the project in consortium with Pacific Corporation (25% equity stake), Sojitz Corporation (18.75%) and Kyushu Electric Power (18.75%).