return icon Vietnamnet.vn

Investors show growing appetite for LNG power projects

A slew of sizeable liquefied natural gas-fired power projects have been in the development pipeline in the past year as a way to replenish national power sources as Vietnam turns on a greener growth path.

investors show growing appetite for lng power projects hinh 0

Investors are showing growing preference to running LNG-fired power projects

 

 

Earlier this month, the prime minister allowed Long An I and Long An II thermal power plants that were already in the revised Power Development Plan VII (PDP VII) to shift from coal to liquefied natural gas (LNG), with a total combined capacity after conversion reaching 3,000MW.

In December 2019, the premier approved adding Bac Lieu LNG Thermal Power Centre with a scale of 3,200MW to the national power development plan for 2011-2030.

The Mekong Delta province of Bac Lieu then swiftly conferred the project’s investment certificate to Singaporean developer Delta Offshore Energy Pte., Ltd. for implementation.

With an estimated investment value of VND93.6 trillion (US$4.1 billion), it is the largest-ever foreign direct investment project in the delta region until present.

A month earlier, the Ministry of Industry and Trade (MoIT) and US-based AES Group signed an MoU on conducting Son My 2 LNG power plant, with a scale of 2,200MW.

The plant, to be located in the southern province of Binh Thuan, has an estimated investment of US$1.7 billion and a contract for 20 years.

“LNG is a clean and reliable energy source at a more reasonable pricing point, so it will play a key role in resolving the ever-growing energy demand in Vietnam. Signing the MoU at this time is an important milestone for developing Son My 2 power plant, a project that we believe will help the energy industry’s transition in Vietnam,” said Mark Green, president of AES for Asia-Europe.

These projects are only a few of the more than 10 sizeable LNG power projects currently in the development pipeline, with production capacity reaching from about 1,000MW to 6,000MW.

The MoIT’s recent report to the government has acknowledged that investors and localities are showing a huge appetite for thermal power projects using imported LNG.

Particularly, besides LNG-fired power complexes whose planning schemes were approved with a combined capacity of 9,200MW, nine other LNG power complexes with a total capacity of approximately 34,000MW are in different phases of consideration.

In addition, there have been two proposals on shifting from coal and oil to LNG, with a combined capacity after conversion reaching 5,700MW.

Last month, Deputy Prime Minister Trinh Dinh Dung met with a group of US and the  Republic of Korea's investors showing a keen interest in developing LNG power projects in Vietnam.

The investors reaffirmed their wish to invest in LNG power projects to develop clean energy sources and ensure sufficient power supply for both production and consumption. They also pledged to make long-term and effective investments in LNG power project development in the country.

According to Deputy PM Trinh Dinh Dung, the demand for electricity in Vietnam is growing at an average 10% a year.

The country is diversifying its sources of power in the direction of reducing coal power and raising the share of gas and renewable energy, Dung said, adding that gas-fired power is slated to account for 12% of total electricity generation, equivalent to 17GW, by 2030.

Vietnam, with a GDP growth averaging 6.5% in the last few years, has a long-standing policy orientation that emphasises the crucial role of natural gas in supplying reliable, competitive electricity while meeting national carbon emissions targets.

Based on the current outlook for domestic production, the country will need to import significant volumes of LNG within the next 5-10 years, necessitating at least US$7-9 billion of investment in LNG import infrastructure, according to the World Bank.

Looking at the current national power system capacity of around 58,000MW, the aforementioned LNG power production projects with a capacity reaching nearly 50,000MW attest to strong investor engagement which is by no means cooler than the investment wave into solar and wind power projects in the past two years. VIR

Bac Lieu LNG-to-power project triples January FDI inflow

Bac Lieu LNG-to-power project triples January FDI inflow

The Bac Lieu LNG-to-power project marks the first billion-dollar foreign direct investment project in 2020 after a year going without projects of this magnitude, effectively tripling the first-month foreign investment inflows against last year.

LNG the fuel of the future

LNG the fuel of the future

Foreign investors need a smoother passage before bringing much-needed LNG projects to life in Vietnam.

MORE NEWS

New FDI approvals plunge in Q1/2023

Although the number of new FDI projects approved in the first quarter this year grew over the same period in 2022, their capital pledges edged down.

Culture Trip shares surprises while enjoying beer in Vietnam

Vietnam is one of the leading countries in beer consumption in Asia. Bia hoi (draught beer) is a favorite choice of many Vietnamese on hot summer days. But do foreign tourists know how to drink bia hoi like a local?

Vietnamese students win awards in Stanford University competition

Two first-year students from Vietnam are among the winners at Stanford University's TreeHacks - a technology competition for students. The team developed a VR glass device for debate training.

Vietnam enters Top 5 destinations for summer vacation

UK travel magazine Expedia has listed Vietnam among its Top 5 international destinations that visitors should visit this summer.

Five caves discovered in Quang Binh province

Five caves were recently discovered in Lam Hoa commune of Tuyen Hoa district in the central province of Quang Binh by experts of the British Royal Cave Association.

VIETNAM BUSINESS NEWS MARCH 28/2023

PM orders close coordination to remove obstables to property market

VIETNAM NEWS HEADLINES MARCH 28/2023

Top Vietnamese, Chinese legislators hold online talks

CAAV to trial biometric authentication at Van Don airport

Following a test operation at the Cat Bi International Airport in Haiphong City, the Civil Aviation Authority of Vietnam (CAAV) will introduce biometric authentication technology at the Van Don International Airport in Quang Ninh Province.

Vietnam considers unilateral visa waivers for more countries

The government is going to ask the National Assembly to consider granting electronic visas to citizens of all countries and territories.

Places not to be missed when traveling to Can Tho

Although Can Tho province has seen fast economic growth, it still retains the typical cultural features of the Mekong River region. Here are its most attractive places:

Mui Ne among world’s top 5 destinations for hot air balloon ride

Mui Ne, a coastal fishing town in the southcentral province of Bình Thuan, has been named among the top five best destinations for a magical hot air balloon ride, according to booking.com.

Medical-equipment license applications still being processed

About 7,000 dossiers applying for licenses for circulation of medical equipment are still unhandled. These include dossiers submitted a long time ago.

VN warns against downgrading COVID-19 status due to risk of new variants

The Ministry of Health has stated that while the COVID-19 situation is currently under control within the country, the risk of new, more dangerous variants emerging is too high to downgrade the status of the virus yet.

Appeals trial of chairman of Alibaba real estate scam delayed until May

The HCM City People’s Court has decided to delay the appeals trial of Alibaba Company owners and employees who were earlier found guilty of property fraud and money laundering.

Thanglong Warriors, Rohto Saigon Heat win VBA 3x3 tournaments

Thanglong Warriors proved their power with the second title of the VBA 3x3 Prime 2023 on March 26 in Nha Trang, Khanh Hoa Province.
back_to_top