EVN and PV GAS agree to supply LNG for Quang Trach power plants

EVN and PV GAS agree to supply LNG for Quang Trach power plants

Vietnam Electricity (EVN) and Petrovietnam Gas (PV GAS) signed a framework agreement on the supply of liquefied natural gas (LNG) from the Vung Ang LNG terminal in Ha Tinh to the Quang Trach II and III power plants on April 3 in Hanoi.

The event marks an important step forward in cooperation between the two entities to secure fuel supply for gas-fired power projects, contributing to strengthening national energy security.

Speaking at the ceremony, Deputy Minister of Industry and Trade Nguyen Hoang Long emphasised that, amid rapidly rising electricity demand, ensuring stable and continuous power supply remains a core task assigned to the sector by the Party and the State, with the requirement of “absolutely no power shortages under any circumstances.”

He said, "The implementation of LNG-to-power projects represents a concrete step in realising the adjusted Power Development Plan VIII, helping to add critical baseload capacity to the national power system, particularly in northern Vietnam."

He also commended the proactive role of Ha Tinh province in coordinating project implementation, as well as the strong engagement of major energy groups such as EVN, Petrovietnam and PV GAS in developing both LNG storage infrastructure and power plants in a synchronised manner.

The Deputy Minister noted that advancing key energy projects aligns with the orientations already set out. "The signing ceremony represents a significant milestone, demonstrating close coordination among stakeholders across the LNG value chain, while contributing to the effective implementation of tasks assigned to the energy sector," he said.

At the event, CEO of EVN Nguyen Anh Tuan said that over the past two decades, cooperation between EVN and PV GAS has played a vital role in ensuring national energy security, particularly in supplying gas for power generation.

"As domestic gas resources decline, the proactive adoption of regasified LNG is a key solution to securing fuel for electricity production," he said.

Tuan stressed that the framework agreement to supply LNG from the Vung Ang terminal to Quang Trach II and III is of strategic importance in developing LNG infrastructure, optimising resources, and ensuring a stable, long-term fuel supply. EVN is committed to working closely with PV GAS to effectively implement the agreement.

"The Quang Trach power complex, with a combined capacity of around 3,000 MW, will provide a significant addition to the power system, enhancing operational flexibility, supporting renewable energy integration, and reducing environmental emissions," he added.

Le Xuan Huyen, deputy CEO in charge of the Executive Board of Petrovietnam, said the signing of these agreements concretises major policies on LNG-to-power development, contributing to energy security and advancing a sustainable energy transition. Petrovietnam and its subsidiaries have been actively investing in LNG infrastructure, including the North Central LNG terminal at Vung Ang, which plays a key role in supplying gas to power plants in the region.

"Petrovietnam has been actively seeking and negotiating long-term LNG supply sources to ensure stable volumes at competitive prices, thereby enhancing fuel security amid a volatile global energy market," he said.

PV GAS is committed to working closely with EVN and PV Power to effectively implement LNG infrastructure and supply projects, particularly in the North Central region, ensuring progress and quality, and contributing to the realisation of national energy development goals.

The signed framework agreement will serve as a basis for the two sides to continue negotiating and concluding specific LNG sale and purchase contracts in the near future, ensuring a timely fuel supply for EVN’s gas-fired power projects.

VIR