Proposal for Quang Tri LNG Thermal Power Plant project in Southeast Economic Zone

This afternoon, January 24, Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee Vo Van Hung worked with the consortium of investors T&T Group Joint Stock Company and SK E&S Company Limited on the proposal for the Quang Tri LNG Thermal Power Plant project.

Chairman of the Provincial People's Committee Vo Van Hung listened to the representative of the investor consortium presenting the investment proposal report for the Quang Tri LNG Thermal Power Project - Photo: HT

According to the report of the Department of Industry and Trade, the Quang Tri Thermal Power Plant project (1,320 MW) in the Southeast Economic Zone was approved by the Prime Minister in the National Power Development Plan for the period 2011-2020 with a view to 2030 (Power Plan VII) and agreed to let the Thai Electricity International Company (EGATi) be the investor, implementing it under the BOT form.

However, in the past 10 years, although the investor and Quang Tri province have made many efforts, due to many different reasons, the project implementation has not been as initially committed. According to Decision No. 500/QD-TTg dated May 15, 2023 of the Prime Minister approving the Power Plan VIII, the Quang Tri Thermal Power Plant project (1,320 MW) will be commercially operated in the period of 2026 - 2030 and is included in the list of coal-fired thermal power projects that are behind schedule, facing difficulties in changing shareholders and arranging capital; The Ministry of Industry and Trade works with investors, allowing an extension until June 2024, if it cannot be implemented, it must be considered for termination according to the provisions of law.

On the other hand, the People's Committee of Quang Tri province has received a document from EGATi regarding the discontinuation of the Quang Tri Thermal Power Plant project. At the same time, EGATi has also sent an email regarding the draft agreement to terminate the project between EGATi and the People's Committee of Quang Tri province. Currently, the People's Committee of the province is studying the draft to consider the agreement to terminate the project according to regulations.

On August 9, 2023, the Provincial People's Committee sent a document to the Prime Minister and the Ministry of Industry and Trade requesting to convert the Quang Tri Thermal Power Plant project into a gas-fired power plant with a capacity of 1,500 MW operating in 2025-2030. The Government Office also sent a document to the Ministry of Industry and Trade for consideration and handling in accordance with the provisions of law. According to the Power Plan VIII, the capacity of LNG thermal power sources by 2030 is estimated to reach a maximum of 22,400 MW and there are projects under investment (Quang Tri province has the Hai Lang LNG Power Center project with a capacity of 1,500 MW, phase 1).

In addition, the power source development plan according to Power Plan VIII clearly states the limitation of developing power sources using LNG if there is an alternative plan to reduce dependence on imported fuel. Therefore, the above adjustment is very difficult in the period up to 2030, and the Ministry of Industry and Trade has not yet officially reported to the Prime Minister on this issue as proposed by the Provincial People's Committee.

At the meeting, representatives of the consortium of investors T&T Group Joint Stock Company and SK E&S Company Limited gave an overview of the consortium's capacity; proposed to implement the investment in the Quang Tri LNG thermal power project and expected implementation plan in the coming time. The consortium of investors also hopes that the Provincial People's Committee will issue a document allowing the investor to conduct research and survey to prepare a dossier requesting approval of the investment policy of the Quang Tri LNG project to have a basis for implementing the following tasks; at the same time, allowing the consortium of investors to consider studying the proposal to invest in the central LNG warehouse in Hai An commune, Hai Lang district.

After listening to the investor consortium report on the project investment proposal, as well as discussing a number of related issues, Chairman of the Provincial People's Committee Vo Van Hung highly appreciated the capacity of the investor consortium, and basically agreed with the idea and expected roadmap for project implementation.

The Chairman of the Provincial People's Committee requested that after the province completes the procedures to terminate the implementation of the Quang Tri Thermal Power Plant project (1,320 MW) in the Southeast Economic Zone according to regulations, the investor consortium needs to have a complete document on the overall proposal for project implementation strategy to submit to the Provincial People's Committee for consideration as a basis for reporting to the Standing Committee of the Provincial Party Committee.

The Chairman of the Provincial People's Committee also proposed that the consortium of investors continue to research and implement comprehensive cooperation with the province in a number of key areas, and at the same time introduce more potential investors to Quang Tri province for investment cooperation in the coming time.

Ha Trang

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