There are many challenges in putting LNG and gas power projects into action

The Director of the Department of Electricity and Renewable Energy, Mr. To Xuan Bao, stated that the Electricity Planning VIII project has a total capacity of 30,424 MW for 23 gas power plant projects that will be invested in and operationalized by 2030. Of which 7,900 MW is the combined capacity of 10 gas power plants that use gas that is exploited domestically; the remaining energy comes from LNG. Most of the gas power projects that are currently being prepared for investment have not made much progress. In particular, the three projects with a combined capacity of 4,500 MW – Ca Na, Nghi Son, and Quynh Lap – have not yet attracted investors.

In particular, Quang Ninh has not finished the feasibility report (FS) for the Hai Lang LNG project phase 1 to submit to the Ministry of Industry and Trade for review, as per the assessment of the Department of Electricity and Renewable Energy. The PPA negotiations for LNG Bac Lieu, Hiep Phuoc phase 1, and O Mon 2 are still ongoing. The investment policy adjustment and FS approval for the two projects, Long An I and II, have not yet been completed. Investors have not yet finished the FS by the rules for BOT Son My I and II to be eligible for approval.

The construction of Nhon Trach 3 and 4 has advanced, and they have finished receiving power from the 220kV line into the 220kV distribution yard of the Nhon Trach 3 power plant. These are notable bright spots. The provincial People’s Committee and Provincial Party Committee of Dong Nai province have been actively resolving the outstanding issues related to the land lease issue at the same time. According to assigned tasks, the Department of Electricity and Renewable Energy stated that it is creating a draft decree on the mechanism for exchanging electricity for power projects that use LNG and domestic natural gas.

The primary issues with 15 provinces and cities that have projects in progress are contract negotiations and signing, clearing land, and contract negotiations and signings for connection agreements where the owner is unknown. putting money into transmission line projects, coming up with incentives, and making sure that investors’ investments don’t violate the law as it stands. The vice chairman of the Ninh Thuan Provincial People’s Committee, Mr. Trinh Minh Hoang, stated that although the province has accepted the bidding documents, certain issues remain. The province will make the Ca Na project bidding documents available in early June 2024. As of right now, it is known that six joint venture contractors are putting in bids for this project.

The Vice Chairman of the Provincial People’s Committee in Thanh Hoa, Mr. Nguyen Van Thi, disclosed that Nghi Son LNG is a 1,500 MW LNG power plant with an LNG import port, a breakwater approximately one km in length, and auxiliary infrastructure works. Five investors recently submitted applications to the local authorities seeking approval for the Nghi Son LNG thermal power project. “The legal requirements must be followed when choosing investors. The province of Thanh Hoa promises to finish it by September and to begin construction as soon as the legal processes are finished,” Mr. Thi promised. The project has now finished approving five specialized agreements, including those for the supply of clean water, construction power, and the confirmation of material supply capacity, for Hai Lang LNG phase 1 (capacity 1,500 MW). Building, introducing the location of the waste disposal site for construction materials, and obtaining written permission for that location.

Nonetheless, thirteen specialized agreements remain unsigned by authorized authorities. The meticulous planning of seaports, ports, wharves, signal buoys, water areas, and water areas for the years 2021–2030, along with an unapproved vision for 2050, is the cause of the problem; the signing of the connection plan agreement is another factor.

Mr. Ha Sy Dong, Vice Chairman of Quang Tri Provincial People’s Committee, suggested several items for the agreement to link phase 1 of the Hai Lang LNG project to the national power system, including contract buying and selling of electricity and the conversion of LNG prices into electricity prices, to guarantee project progress.

Since April 12, work on two projects in Dong Nai, Nhon Trach 3 and 4, has been advancing gradually. The province of Quang Ngai reported that it has collaborated with EVN to resolve site clearance issues for the Dung Quat I 750 MW and III 750 MW projects, which have EVN as their investor; Dung Quat II 750 MW also has an investor who is a foreign company, and both projects use Blue Whale gas. The group is particularly interested in the development of gas power plants, according to Mr. Nguyen Anh Tuan, General Director of EVN, about the transmission line. Simultaneously, EVN declared that it is encouraging the execution of transmission line projects that it has funded, making sure that these projects are in line with the advancement of power source projects to release capacity as soon as possible.


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