On the afternoon of May 24, Minister of Industry and Trade Nguyen Hong Dien chaired an online meeting with localities, investors, and the State Capital Management Committee regarding natural gas-fired power projects that utilize domestically extracted natural gas and LNG, which are included in the list of key investment projects of the Power Planning and Implementation Plan for Power Planning VIII.
Minister of Industry and Trade Nguyen Hong Dien chaired the online meeting with localities, investors, and the State Capital Management Committee – Photo: Cong Thuong Newspaper
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According to Minister Nguyen Hong Dien, after the meeting on April 12, the Ministry of Industry and Trade issued Conclusion No. 94/TB-BCT. However, based on the reports from some localities and the monitoring of specialized units within the Ministry of Industry and Trade, the implementation of gas-fired power projects has not made significant progress, except for the Nhon Trach 3 and 4 Power Plants.
At the meeting, representatives from localities with projects, the Vietnam Electricity Group, the Vietnam Oil and Gas Group, and related units reported on the progress of project implementation, the difficulties they are facing, and proposed solutions.
The main obstacles include contract negotiations and signings, site clearance progress in localities, some localities’ inability to negotiate and sign connection agreements due to unidentified investors for transmission line projects to release capacity, and investors’ proposals for incentives and investment guarantees that are inconsistent with current legal regulations.
Regarding the progress of gas-fired power projects that have not yet selected investors, Mr. Trinh Minh Hoang, Vice Chairman of the People’s Committee of Ninh Thuan Province, said that six interested contractors are submitting their bids, and the province is expected to issue the bidding documents in early June 2024.
Mr. Nguyen Van Thi, Vice Chairman of the People’s Committee of Thanh Hoa Province, stated that the province is home to the LNG Nghi Son project, which includes a 1,500 MW LNG-fired power plant, an LNG import terminal, a 1-kilometer long breakwater, and auxiliary infrastructure serving the LNG port. Previously, the Management Board of Nghi Son Economic Zone and Industrial Zones received dossiers from five investors proposing to approve the investment policy for the LNG Nghi Son Thermal Power Plant project.
“Thanh Hoa Province commits to completing the procedures in September and starting construction after the legal procedures are finished,” affirmed Mr. Nguyen Van Thi.
Regarding the LNG Hai Lang project in Quang Tri Province, with a capacity of 1,500 MW in the first phase, so far, the project has approved five specialized agreements, and 13 specialized agreements are pending approval. The reasons are related to the detailed planning of the group of seaports, ports, piers, signal buoys, water areas, and regions for the period of 2021-2030, with a vision towards 2050, which has not been approved, and difficulties in signing the connection agreement.
Ms. Nguyen Thi Hoang, Vice Chairman of the People’s Committee of Dong Nai Province, reported that since the meeting on April 12, the Nhon Trach 3 and 4 Power Plants have made progress in construction. Specifically, the Tin Nghia Corporation no longer obstructs the construction of the channel for discharging cooling water that cuts across the road, and the reverse power transmission from the 220 kV line to the 220 kV SPP of the Nhon Trach 3 Power Plant has been completed. Additionally, the Provincial Party Committee and People’s Committee of Dong Nai have actively directed the resolution of the remaining issues in land leasing.
Similarly, the Director of the Department of Industry and Trade of Quang Ngai Province stated that the province had worked with EVN to resolve difficulties in site clearance for projects such as Dung Quat I (750 MW) and III (750 MW), with EVN as the investor, and Dung Quat II (750 MW), which has a foreign investor, as well as projects using gas from the Ca Voi Xanh field.
Investors join hands with localities
Mr. Nguyen Anh Tuan, CEO of EVN, speaks at the meeting – Photo: Cong Thuong Newspaper
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Mr. Nguyen Anh Tuan, CEO of EVN, said that EVN is making efforts to accelerate the progress of transmission line projects to ensure synchronization with the schedule of power sources and timely release the capacity of power plants.
Similarly, a representative of PVN stated that the unit is urgently implementing the chain of gas-fired power projects in Lot B and the O Mon III and IV power projects. They are also expediting the completion and signing of contracts for power projects using gas from Lot B. PVN is actively speeding up the implementation of power and gas projects that have been assigned as investors to put them into operation soon.
At the same time, PVN actively coordinates with localities in building a gas center in Vung Ang (Quang Binh) to provide gas sources for surrounding localities, facilitating the implementation of projects and ensuring sufficient energy sources for production.
Concluding the meeting, Minister Nguyen Hong Dien acknowledged the particular importance of gas-fired power projects, including both domestically extracted natural gas and LNG, to the Power Development Plan VIII by 2030 and, especially, to national energy security, especially in the North.
“This is a baseload power source and also a power source with low emissions. Therefore, if we delay the progress of these projects, it will affect national energy security,” said Minister Nguyen Hong Dien.
However, based on the reports from the provinces, cities, and investors, the implementation of gas-fired power projects has not made much progress, except for the Nhon Trach 3 and 4 Power Plants. “If this situation continues, national energy security will be seriously affected,” the Minister assessed.
The ultimate goal is to generate electricity before 2029
Therefore, to strictly implement the Decision of the Prime Minister on the Power Planning VIII and towards the goal of net-zero emissions by 2050 as committed by Vietnam at COP26, Minister Nguyen Hong Dien proposed the following:
“Investors will receive the fastest and most favorable support when complying with the provisions of Vietnamese law,” said Minister Nguyen Hong Dien.
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For provinces that have not yet selected investors (Thanh Hoa, Nghe An, and Ninh Thuan), they must complete the selection of investors in accordance with the provisions of the law. After selecting the investors, they must urgently implement the approval process for the pre-feasibility study report (FS) and the next steps to ensure that before 2029, the gas-fired power projects in these three provinces will be put into commercial operation.
For provinces and cities that have selected investors and are implementing construction projects (including Dong Nai and Ho Chi Minh City), Minister Nguyen Hong Dien requested the People’s Committees to promptly evaluate the situation and results of the implementation of the projects in their localities, identify difficulties, obstacles, and causes, and proactively resolve problems within their authority.
“For matters beyond their competence, the provinces should report to the Government, the State Steering Committee for important national programs, projects, and key works in the energy sector, and the Ministry of Industry and Trade for support before June 25,” the Minister requested.
The Minister also emphasized that, based on the plans and progress reports of the investors, the competent authorities will supervise, urge, inspect, and handle responsibilities if the investors cause delays multiple times.
Regarding the investors, the Minister requested them to urgently and seriously exert high efforts to implement the power projects in accordance with the provisions of the law, and promptly reflect, report, and propose to the Party committees, local authorities, and the Ministry of Industry and Trade regarding the difficulties and obstacles in the implementation process for timely resolution.
“Investors will receive the fastest and most favorable support when complying with the provisions of Vietnamese law,” said Minister Nguyen Hong Dien.
The Minister proposed that before June 30, investors must report to the competent authorities their commitment on the project progress, with the ultimate goal of generating electricity before 2029. At the same time, they must periodically report the situation, results, and progress of the project to the Steering Committee before the 20th of each month.
For units under the Ministry, the Minister requested them to promptly guide, assist, and supervise the implementation of gas-fired power projects by localities and investors. The Electricity Regulatory Authority should urgently complete and submit to the Government the Decree on Encouraging the Development of Gas-fired Power Projects and the Decree on Direct Power Purchase and Sale.
The Office of the State Steering Committee for important national programs, projects, and key works in the energy sector, the Electricity and Energy Authority, and the Standing Office of the Steering Committee must synthesize the situation through reports and direct inspections at the projects to serve the meetings and prepare reports to the Government and the Steering Committee on a monthly basis.
