Vietnam’s Most Cost-Effective Power Plant Complex, Projected to Generate 9 Billion kWh Annually, Officially Inaugurated

Official Inauguration of Nhon Trach 3 and 4 Power Plants

At the inauguration ceremony, Prime Minister Pham Minh Chinh emphasized that the Nhon Trach 3 and Nhon Trach 4 gas-fired power plants—Vietnam’s first LNG power plants—are a critical “puzzle piece” in strengthening national energy security and meeting the demands of rapid and sustainable development in the new era.

With an annual output of over 9 billion kWh, the Prime Minister highlighted that the operation of Vietnam’s first LNG power plant complex has laid the foundation for the country’s gas-fired electricity market. This marks a significant milestone in building a flexible, clean, stable, and modern national energy system, achieving “six firsts”: (1) Lowest investment cost; (2) Largest scale; (3) Most advanced technology; (4) Highest capacity; (5) Shortest EPC contractor selection time (11 months); (6) Most competitive commercial electricity price.

The Prime Minister also underscored the project’s profound significance for the nation’s development, the regional economy, and local communities:

First, it reinforces Vietnam’s commitment to achieving net-zero emissions by 2050, as pledged at COP26. This ensures energy security while safeguarding the environment and national resources.

Second, it signifies a fundamental shift in mindset, model, and trend toward green, sustainable, and modern energy development, reducing carbon emissions by 40% compared to coal-fired power and 30% compared to oil-fired power (transitioning from fossil fuels to renewable energy).

Third, it provides a solution to national energy security challenges. It acts as a bridge during the transition, minimizing grid instability as the share of renewable energy increases rapidly.

Fourth, the project serves as strategic infrastructure, contributing to the development of the Southern Key Economic Region (revenue collection, high-tech development, high-quality FDI attraction, skilled workforce training, operation of key seaports and logistics, green energy development, and climate change adaptation).

Fifth, as a critical project led by the Vietnam Oil and Gas Group (Petrovietnam), it demonstrates the leading role of state-owned enterprises in ensuring energy security and sustainable development. It also showcases the group’s resilience, organizational capabilities, smart governance, and ability to overcome challenges.

Sixth, it sets the foundation for Vietnam’s LNG gas-fired power development roadmap, driving Power Plan VIII (a model for 13 subsequent LNG projects) and deepening Vietnam’s integration into the global LNG supply chain.

Vietnam’s First Two LNG Power Plants, Total Investment of Approximately $1.4 Billion

Nhon Trach 3 and 4 Power Plants are developed by PetroVietnam Power Corporation (PV Power), a subsidiary of the Vietnam Oil and Gas Group (Petrovietnam), with Lilama – Samsung C&T as the EPC contractor.

The project’s total investment is approximately $1.4 billion, making it the lowest-cost investment project in Vietnam to date.

The project involves 40,000 tons of steel structures, equipment, and 120,000 m³ of concrete. With a combined capacity of 1,624 MW—the largest in Vietnam—the two plants are expected to supply over 9 billion kWh annually once fully operational, providing a significant base-load power source, particularly for the Southern region.

The power plant complex also serves as a flexible energy source, supporting grid dispatch and balance amid the growing share of renewable energy.

The project employs cutting-edge technology, utilizing GE’s 9HA.02 gas turbines (USA)—the world’s most advanced in terms of technology, capacity, and efficiency. This enables the plants to achieve an efficiency rate of 62-64%, the highest in Vietnam.

Specifically, the 9HA.02 technology meets stringent emission standards and allows flexible fuel switching, from LNG to up to 50% hydrogen blending, with the potential for 100% hydrogen use in the future.