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The Government of Vietnam has appointed the EDF Group as leader of the international consortium in charge the Son My 1 project, located in the Quang Ngai province of Vietnam. The project involves the construction of a 2000 MW gas-fired power plant, which uses combined cycle gas turbine technology.
The total investment required is estimated to be EUR1.5 billion (US$1.8 billion).
The consortium is comprised of EDF (37.5% equity stake), Pacific Corporation (25%), Sojitz Corporation (18.75%) and Kyushu Electric Power (18.75%). EDF is taking over ENGIE's stake in the project.
In September 2013, ENGIE (then known as GDF Suez) signed a Memorandum of Understanding (MoU) with PV Gas, the largest gas company in Vietnam, for the development of the project. In June 2017, ENGIE, Sojitz and Pacific were formally assigned the project.
These agreements prescribed that the developers would be responsible for the construction of a substation, access roads and related infrastructure, the installation of turbines, and the laying of transmission lines. The power plant was to be developed in three units on a build, own and transfer (BOT) basis.
EDF has not disclosed whether it will uphold ENGIE's plans, only that it aims to commission the power plant by 2023/2024, with a view to meeting the strong and growing demand for electrical power in the south of Vietnam.
The plant will be fueled by the Son My LNG import terminal being developed by PV Gas. In November 2017, the company signed a MoU with AES Group, which committed the latter to evaluating participating in the construction of the LNG terminal.
The terminal will have a capacity of 1-3 million metric tons/year, and will be commissioned between 2023 and 2025, according to the government's 2035 gas market development master plan, released in January 2017.
EDF is already active in Vietnam via its Mekong Energy Company subsidiary (56.25%). The company operates the Phu My 2.2 facility, which comprises two combined-cycle plants with a total capacity of 715 MW. It's operations in the country are partly driven by its CAP 2030 strategy, which aims to multiply its international business threefold by 2030.