According to recent information posted on the website of PetroVietnam Power Corporation (PV Power – POW), the company in charge of the Nhon Trach 3 and 4 Power Plant project has sent Document No. 170/DLDK-DTXD to relevant authorities to request resolution of difficulties at the Nhon Trach 3 and 4 Power Plant project located in Dong Nai province. The project has a capacity of 1,500MW and a total investment of $1.4 billion.
The Nhon Trach 3 and 4 Power Plant project, which started construction in November 2021, is located in the Ong Keo Industrial Zone, Nhon Trach district, Dong Nai province. This is the first LNG power project in Vietnam, expected to be operational by the end of 2024-2025. As of January 26, 2024, the overall progress of the project is estimated to be 80.2% compared to the planned 86.2%. However, the project is currently facing some difficulties and obstacles that could impact its construction and operation schedule.
Construction site of the Nhon Trach 3 and 4 Power Plant project – Photo: Nguyen Cuong
In response to this, Mr. Nguyen Duy Giang – Deputy General Director of PV Power stated that the Nhon Trach 3 and 4 Power Plant project is one of the national key projects with a total investment of $1.4 billion, and it has reached 80% completion. However, it is currently facing some issues related to land handover for project implementation at the intersection with Road No.4.
“The Ong Keo Industrial Zone in Nhon Trach district, Dong Nai province, managed and leased by Tin Nghia Company, has not agreed for the project to carry out the construction of the water cooling canal, leading to the risk of delays. Therefore, we have sent an urgent letter to the Government requesting resolution,” PV Power said.
According to PV Power, the issue arises from the management unit of the industrial zone proposing a usage fee of about $100/m2 for infrastructure, paid in a lump sum for the entire project duration of 4 years of construction and 25 years of operation. PV Power believes that the current fee is not based on clear legal grounds.
PV Power also stated that the delays in construction could lead to delays in supplementing power sources into the power system and could potentially affect the national energy security. This issue requires the resolution of the Government, ministries, departments, Dong Nai Provincial People’s Committee, and Nhon Trach District People’s Committee, and the Management Board of Dong Nai Industrial Zones.
“In response, Mr. Tran Trung Tuan, General Director of TIN NGHIA Corporation, said that recently, the leaders of PV Power and TIN NGHIA Company had a working session. At this meeting, the parties agreed that by March 15, after PV Power has the results from the consulting unit to appraise the rent price of the industrial zone’s infrastructure, there will be a basis to agree on the rent price of the infrastructure with TIN NGHIA Company,” PV Power said.
General view of the construction site of the Nhon Trach 3 and 4 Power Plant project – Photo: Petrovietnam
As of now, PV Power is still awaiting the opinions of the Government and Dong Nai province to allow the investor and contractors to continue construction and ensure that the project is completed on schedule, contributing to the guarantee of energy security.
The water cooling canal is a critical component in the project’s progress and the temporary suspension of construction poses a significant risk that could prevent the project from being completed on time, thereby impacting the investor, contractors, thousands of workers, and machinery at the construction site. In addition, the expected cost resulting from the suspension of construction is significant and will cause serious losses to PV Power.
The Nhon Trach 3 and 4 Power Plant project is located in Phuoc Khanh commune, Nhon Trach district, Dong Nai province. It is a nationally important project implemented by PV Power. The project has a capacity of 1,500MW and a total investment of $1.4 billion. When operational, the project will provide an additional 9 billion kWh of electricity annually.
This is a national key project with many leading indicators in Vietnam, such as being the first and most advanced LNG-fueled project in the country. It adopts a 1:1:1 configuration (gas turbine – steam turbine – generator) which is the first of its kind in the country. It is one of the few gas turbine units with a capacity (over 500MW) and gas efficiency (over 60%) that are among the largest in the world. The project is being constructed and installed by reputable contractor Lilama Corporation – a member of the Samsung C&T-Lilama Joint Venture.
Upon operation, the project will contribute to promoting the shift to clean energy in Vietnam and achieving the commitment of net-zero emissions by 2050. In addition, the project has significant importance in ensuring national energy security by supplying about 9 billion kWh of electricity to the grid annually. According to PV Power’s General Director Le Nhu Linh, the Nhon Trach 3 and 4 Power Plant project will open a new chapter in the formation and development of LNG projects in Vietnam. This is a project that contributes to the positioning of PV Power and the Vietnamese energy industry.
