EVN signs power deal for 1,200 MW LNG plant in Ho Chi Minh City

EVN signs power deal for 1,200 MW LNG plant in Ho Chi Minh City

Vietnam Electricity has signed an agreement for the Hiep Phuoc Liquefied Natural Gas Power Plant – Phase I, marking a step forward for the project.

On March 26, Vietnam Electricity (EVN) and Hiep Phuoc Power Co., Ltd. signed the Power Purchase Agreement (PPA) and held a groundbreaking ceremony for the plant in Hiep Phuoc Commune, Ho Chi Minh City.

This is the second PPA in the liquified natural gas (LNG) power sector in Vietnam, following the Nhon Trach 3 and 4 projects. It is also the first LNG PPA implemented under Decree No.56/2025/ND-CP, as amended by Decree No.100/2025/ND-CP, which establishes preferential mechanisms for imported LNG power plant development. The event marks a step forward in completing the legal framework and promoting LNG power projects in Vietnam.

The Hiep Phuoc LNG Power Plant – Phase I is a key national project developed under the build-operate-own model, with an investment of around VND18.9 trillion ($892 million) and an installed capacity of 1,200 MW. It utilises advanced gas turbine technology supplied by Siemens, delivering high efficiency with optimised operations and lower emissions.

At the event, officials said the signing of the PPA and the groundbreaking demonstrate a strong commitment to developing cleaner and more flexible power sources, contributing to national energy security amid rising power demand.

Once operational, Hiep Phuoc will supply more than seven billion kWh of electricity annually to the national grid, supporting stable power supply for the country's socioeconomic development.

VIR