Vietnam’s first LNG-fuelled power plant completes test firing

PV Power, a subsidiary of Vietnam Oil and Gas Group (PetroVietnam), has carried out the initial firing of the country’s first liquefied natural gas (LNG) power plant, achieving what it says is a milestone on the road to putting the project into commercial operation.

The event marked two firsts for the Southeast Asian country. In addition to the firing of the Nhon Trach 3 LNG power plant, PV Power says this is the first time imported LNG has been introduced into a power plant in Vietnam. The inaugural ignition was carried out by PV Power’s General Director Le Nhu Linh.

This is in line with the request by the country’s Prime Minister to step up the ante on starting the commercial operation of the country’s LNG projects amid the announced delays.

Comprising two 750 MW facilities with a combined capacity of 1,500 MW, the Nhon Trach 3 and 4 power plant is anticipated to supply the power grid with more than 9 billion kWh of electricity yearly once it starts producing commercial electricity.

The project’s engineering, procurement, and construction (EPC) portion is said to be 98% done. The contractor, a joint venture between Samsung C&T and Lilama, expects to reach the next milestones of plant synchronization and system blowing and cleaning by the end of January 2025 and February 2025, respectively. 

According to PV Power, several important events took place last year enabling the project to move forward. These included securing a capital arrangement and signing a power purchase agreement (PPA) with Electricity Power Trading Company (EPTC), part of Vietnam Electricity (EVN).

Additionally, PV Power and PetroVietnam Gas (PV Gas) are said to be in the final steps of signing a gas supply contract (GSA) for the project, ensuring a long-term and stable gas source for future operations. 

In 2023, PV Gas inaugurated what it says is Vietnam’s largest LNG terminal, Thi Vai. The facility is estimated to offer a capacity of 1 million tons per annum (mtpa) of LNG in phase 1, with an expected increase to three million tons in phase 2.

In May 2024, the Vietnamese firm welcomed its fourth shipment at the terminal when the Point Fortin tanker carrying more than 60,000 tons of LNG arrived at the port.