Prime Minister Praises $1.4 Billion Project Requiring 40,000 Tons of Steel, 120,000m³ of Concrete, and 10 Million Man-Hours

On December 14th, Prime Minister Pham Minh Chinh attended the inauguration ceremony of Nhon Trach 3 and Nhon Trach 4 Power Plants, marking a significant milestone in Vietnam’s energy sector. The event also celebrated the upcoming 14th National Party Congress.

Developed by PV Power, a subsidiary of Petrovietnam, in collaboration with the Lilama-Samsung C&T consortium as the EPC contractor, these plants represent a $1.4 billion investment. The construction involved 3,257 workers, 40,000 tons of steel, 120,000 cubic meters of concrete, and over 10 million man-hours.

With a combined capacity of 1,624 MW, the plants are expected to generate over 9 billion kWh annually, significantly boosting Vietnam’s power grid, particularly in the southern region.

As Vietnam’s first LNG-fueled power project, it pioneers the transition from coal to cleaner energy sources. The project boasts the largest gas turbine capacity in Vietnam (812 MW per unit) and utilizes GE’s advanced 9HA.02 turbines, achieving an impressive 62-64% efficiency.

Notably, the project achieved the fastest EPC contractor selection (11 months), highest local contractor participation (40% by Lilama), and the lowest investment cost in Vietnam to date.

Prime Minister Chinh emphasized the project’s role in ensuring national energy security and sustainable development. He highlighted its “six bests”: lowest investment cost, largest scale, most advanced technology, highest capacity, shortest EPC selection time, and most competitive electricity price.

The project aligns with Vietnam’s COP26 commitment to achieve net-zero emissions by 2050, reducing carbon emissions by 40% compared to coal and 30% compared to oil-fired power.

It serves as a bridge in the energy transition, ensuring grid stability as renewable energy integration increases. The project also contributes to the Southern Key Economic Region’s development, attracting FDI, fostering high-tech industries, and enhancing logistics infrastructure.

Executed by Petrovietnam, the project showcases state-owned enterprises’ leadership in energy security and sustainable development, demonstrating their resilience and management capabilities.

Prime Minister Chinh acknowledged the unprecedented challenges faced during implementation, including COVID-19 disruptions, complex financing without government guarantees, lengthy procedures, land acquisition issues, and material shortages. Despite these, the project was completed on schedule, thanks to the dedication of all stakeholders, working tirelessly in “3 shifts, 4 teams” mode.

“This project exemplifies Vietnam’s determination and capability, showcasing our spirit and resilience. The power and oil & gas sectors have proven their maturity and strength,” the Prime Minister concluded.