LNG power plant projects risk falling behind schedule

LNG power plant projects risk falling behind schedule

Of the 18 liquefied natural gas (LNG) power plant projects with a total capacity of over 20,000 MW, only two have commenced construction, and only the Hiep Phuoc LNG project is assessed as likely to be on schedule.

17 of 18 LNG power plant projects face the risk of being behind schedule. Photo: chinhphu.vn

This was reported at the first meeting of the steering committee for key projects in the fields of industry, trade, and construction took place on October 1.

At the meeting, Deputy Minister of Industry and Trade Truong Thanh Hoai stated that key energy projects are currently distributed across different stages and there are significant discrepancies in progress.

Of the 18 LNG power plant projects under monitoring with a total capacity of over 20,000 MW, 16 projects have completed the investor selection process, while the remaining two projects, namely Nghi Son LNG and Long Son LNG, still have not selected investors.

Even in May, Nghi Son Economic Zone Management Authority had to cancel the bidding to select the investors for the Nghi Son LNG-fired thermal power plant for the third time, as zero dossiers were submitted.

Of the 16 projects that already have investors, only two have actually commenced construction, while 14 are still in the process of finalising investment preparation steps.

Minister of Industry and Trade Le Manh Hung stated that only the Hiep Phuoc LNG project is considered likely to meet the schedule.

In March, 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 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, which establishes preferential mechanisms for imported LNG power plant development. The event marks a step forward in completing the legal framework and boosting LNG power projects in Vietnam.

Meanwhile, the vast majority of the remaining projects are facing numerous obstacles related to investment preparation procedures, land clearance, capital arrangement, and negotiations of PPAs, along with accompanying technical conditions.

Due to the unique nature of the gas-electricity chain, delays in one component risk directly affecting the entire supply chain. Therefore, the Ministry of Industry and Trade is required to have a thorough review of each project's completion capacity to promptly develop appropriate alternative power source options, ensuring national energy security.

At the meeting, Deputy Prime Minister Pham Gia Tuc requested the development of specific timelines for each energy project, from investment preparation and decision-making to the selection of engineering – procurement - construction contractors and commercial operation date (COD).

DPM Tuc noted that monitoring and supervision should not only be based on the final COD milestone but should also track each stage throughout the entire implementation process to identify and address pending issues early.

VIR