Vietnam Inaugurates First LNG Power Plants, Marking Major Step Toward Cleaner Energy

Hanoi, The Gulf Observer: Prime Minister Phạm Minh Chính on Sunday inaugurated Việtnam’s first liquefied natural gas (LNG) power plants, marking a significant milestone in the country’s transition toward cleaner and more sustainable energy sources.

The twin Nhơn Trạch 3 and Nhơn Trạch 4 power plants, developed by State-owned energy group Petrovietnam at a total investment of US$1.4 billion, have a combined capacity of 1,624 megawatts (MW) and are expected to generate more than nine billion kilowatt-hours of electricity annually. The facilities will provide flexible baseload power to enhance grid stability as renewable energy accounts for a growing share of Việtnam’s energy mix, particularly in the southern region.

The new plants are designed to address the country’s rapidly rising electricity demand, which requires annual capacity additions of between 6,500 MW and 8,200 MW. Việtnam’s current peak electricity consumption stands at 54,500 MW, with power demand growth needing to outpace gross domestic product (GDP) expansion by 1.5 to two times. This surge is driven by the country’s push into high-tech manufacturing, semiconductor production, data centres and high-speed rail infrastructure.

Speaking at the inauguration ceremony in Đồng Nai Province, Prime Minister Chính said the project represents a crucial contribution to strengthening national energy security and meeting Việtnam’s fast and sustainable development needs. He described the plants as a model project that successfully overcame numerous challenges while maintaining high standards of quality, safety and environmental protection.

The facilities are equipped with GE’s 9HA.02 gas turbines, among the most advanced globally in terms of capacity and efficiency. The turbines achieve efficiency levels of 62 to 64 per cent and are capable of blending up to 50 per cent hydrogen, with the potential to operate on 100 per cent hydrogen in the future.

LNG-fired power generation reduces carbon emissions by around 40 per cent compared to coal and 30 per cent compared to oil, supporting Việt Nam’s commitment to achieving net-zero emissions by 2050.

Construction of the project began in May 2022 amid the COVID-19 pandemic and proceeded without Government guarantees, requiring financing from international institutions under stringent standards. At the time of launch, regulatory frameworks for LNG pricing and long-term power purchase agreements were incomplete, while land acquisition and equipment logistics posed additional challenges during the pandemic.

Despite these obstacles, Petrovietnam and the main contractor consortium Lilama–Samsung C&T worked around the clock to complete the project on schedule. The engineering, procurement and construction (EPC) contractor selection process was completed in just 11 months, among the fastest for a project of this scale. Domestic contractor Lilama accounted for approximately 40 per cent of the EPC workload, the highest level of local participation recorded for a thermal power plant in Việtnam.

The plants will primarily serve southern Việtnam, the country’s main economic engine and a key destination for high-tech foreign investment. They are expected to play a foundational role in establishing Việtnam’s gas-fired power market and serve as a template for 13 additional LNG projects outlined in the national power development plan.

Prime Minister Chính emphasised that stable and modern energy infrastructure is fundamental to rapid and sustainable economic growth, noting that countries achieving high growth rates consistently possess robust energy systems.

Petrovietnam Chairman Lê Mạnh Hùng said the successful completion of the project lays the groundwork for developing LNG power centres nationwide, contributing to long-term energy security and the country’s net-zero emissions goal.

In August, the Politburo issued Resolution 70 on national energy security through 2030, with a vision to 2045. The resolution prioritises energy development to support annual economic growth of over 10 per cent, with State-owned enterprises maintaining a leading role and the private sector acting as a key driver.

According to the Prime Minister, the project offers valuable lessons for future energy initiatives, highlighting the importance of unity, practical problem-solving, effective inter-agency coordination, balanced use of domestic and international resources, and clear accountability with measurable outcomes.

The Government leader reaffirmed continued support for energy infrastructure development, pledging to streamline regulations and improve investment conditions across the LNG supply chain.