“The Race to Realize the $2.2 Billion LNG Power Plant Project in Quang Ninh”

The LNG Quang Ninh Gas-fired Power Plant Project was approved by the Prime Minister and added to the National Power Development Plan for the 2021-2023 period, with a vision towards 2050 (known as Power Plan VIII), as per Decision No. 500/QD-TTg dated May 15, 2023.

To expedite the project, Quang Ninh Province is collaborating with the investors to ensure the project receives ample support from local authorities.

The project, with a total investment of over $2.2 billion, is being developed by a consortium consisting of PetroVietnam Power Corporation, Vietnam Machinery Installation Corporation, Tokyo Gas Co., Ltd., and Marubeni Corporation. It is located in Cam Thinh Ward, Cam Pha City, and spans an area of approximately 60 hectares.

This is the first power project in Northern Vietnam to utilize imported liquefied natural gas (LNG). Upon completion, it will contribute to the rapid development of natural gas-fired power generation in the region, positioning gas-fired electricity as a significant source of power supply, in line with the central government’s orientation. It will also help to meet the country’s energy security and emission reduction goals, while contributing approximately VND 57,700 billion to the local budget over a 25-year period.

The main fuel for the plant is regasified LNG, with an expected demand of 1.1 million tons per year. The project scope includes two 750MW generators, an LNG terminal capable of accommodating 71,500 DWT vessels, two 100,000m3 LNG storage tanks along with a regasification system, a 3.5km LNG pipeline connecting the terminal to the storage tanks, and a 30km 500kV transmission line from the plant to the Quang Ninh 500kV substation.

On July 11, 2022, the Quang Ninh Provincial People’s Committee held a ceremony to grant the investment registration certificate for the project. The LNG Quang Ninh Gas-fired Power Plant is expected to add approximately 9 billion kWh of electricity to the national grid annually, ensuring energy security and reducing greenhouse gas emissions. The project is also in line with the province’s goal of becoming a growth pole and a gateway for international economic cooperation, as well as a fuel and energy supplier for the country.

To realize this vision, the provincial authorities have been actively coordinating, accompanying, and supporting the investors in completing the necessary procedures for the project, including adjustments to the 1/500 detailed planning and project adjustments, as well as finalizing the feasibility study report for submission to the Electricity and Renewable Energy Authority for appraisal. The provincial People’s Committee has also issued multiple directives, requiring the investors to thoroughly review the overall implementation of the project, establish a comprehensive timeline, and commit to executing the project as per the directives. Furthermore, on July 11, 2023, the provincial People’s Committee decided to establish a task force to oversee the project’s progress.

However, to ensure alignment with Power Plan VIII, adjustments to the construction planning, related plans, and the Implementation Plan for Power Plan VIII are necessary (the Quang Ninh LNG-fired Power Plant Project is planned with a capacity of 1,500MW and is included in the list of important and prioritized power projects). As a result, the project falls under the category of projects requiring investment approval, and the investors must obtain investment approval before proceeding with project adjustments, as stipulated in the Law on Investment 2020 and Decree No. 31/2021/ND-CP dated March 26, 2021, of the Government.

The proposed project adjustments include: adding project objectives, adjusting the project scale, updating the implementation location information, modifying the land and water area utilization, and adjusting the project implementation schedule.

To address the aforementioned issues, the Quang Ninh Provincial People’s Committee is working closely with the project investors to finalize the essential legal procedures, aiming to commence construction of the project as soon as possible.