This is Vietnam's first LNG power plant project, invested and built by Vietnam Oil and Gas Power Corporation (PV Power) - a member unit of the Vietnam National Energy and Industry Group ( Petrovietnam ), and is a pioneering project in the roadmap to reduce greenhouse gas emissions and realize the goal of net zero emissions by 2050.
The six "best" projects demonstrate the leading role of state-owned enterprises.
Speaking at the inauguration ceremony, Prime Minister Pham Minh Chinh highly appreciated the efforts of ministries, sectors, and state-owned corporations in implementing and coordinating key national energy projects such as Nhon Trach 3&4, especially the pioneering and proactive role of Petrovietnam and the Samsung C&T-Lilama consortium. The Prime Minister emphasized that Nhon Trach 3&4 boasts six "bests": the lowest investment cost, the largest scale, the most modern technology, the highest capacity, the fastest EPC contract execution time, and the most competitive commercial electricity price.
The Prime Minister commended Petrovietnam's "warrior spirit" in implementing the Nhon Trach 3&4 project, highlighting the crucial role of state-owned enterprises in ensuring national energy security and sustainable energy transition. The construction and inauguration of the Nhon Trach 3&4 project can be considered exemplary in many aspects, especially in overcoming all difficulties, challenges, and obstacles to complete the project on schedule, ensuring quality, safety, environmental protection, and adequate resettlement for the people. We are proud that the electricity and oil and gas sectors have matured and grown stronger than ever, demonstrating the spirit and resilience of Vietnam. This also provides valuable experience for management agencies in developing policies and mechanisms for LNG power projects, ensuring the highest national interests, thereby helping Vietnam integrate more deeply into the global LNG supply chain.
At the event, the Prime Minister also emphasized that energy must be one step ahead and that energy sources must be diversified, with a focus on clean energy. This is a long-term strategic understanding. According to forecasts, electricity demand in the coming period will be very high as Vietnam implements green transformation, digital transformation, develops large-scale national data centers, a national urban railway, and semiconductor chip manufacturing centers…
With a total capacity of 1,624 MW, Nhon Trach 3&4 is the largest gas-fired power plant project in Vietnam and Southeast Asia to date, featuring the largest generating units. It also boasts the lowest investment cost at over $1.4 billion. Nhon Trach 3&4 utilizes GE's (USA) 9HA.02 generation gas turbine technology, the most advanced in the world, and has the highest power generation efficiency to date (approximately 64%). Notably, the 9HA.02 technology meets stringent emission standards and allows for flexible fuel conversion, from LNG to the ability to blend clean hydrogen fuel up to 50%, with the goal of using 100% hydrogen in the future.
Conquer the challenge
Nhon Trach 3 and 4 is the fastest project in terms of selecting an EPC general contractor, securing the Samsung C&T – Vietnam Machinery Installation Corporation (Lilama) EPC consortium in just 11 months. This is a record for a large-scale project implemented during the COVID-19 pandemic. Furthermore, Nhon Trach 3 & 4 boasts the highest participation rate of Vietnamese contractors in a high-tech gas-fired power plant project, with Lilama undertaking nearly 40% of the work.
As Vietnam's first LNG project, Nhon Trach 3&4 faced numerous unprecedented challenges, ranging from the legal framework and policy mechanisms for LNG power development, to the selection of high-tech equipment suppliers, and the handling of a large volume of investment and construction procedures. Despite this, the project maintained its progress and quality thanks to the decisive efforts of Petrovietnam, PV Power, the Contractor Consortium, and the close support of regulatory agencies, laying the foundation for the stable operation of Vietnam's first LNG plant in the future.
Notably, the project's financing was secured without government guarantees and had to meet the stringent environmental and social standards of international financial institutions. The project received support and funding from reputable international credit institutions such as SACE (Italy), SERV (Switzerland), KSURE (Korea), SMBC (Japan), ING (Netherlands), Citi (USA), and Vietcombank (Vietnam). The fundraising process demonstrated the project's management capabilities, financial management expertise, credibility, and the ability to implement large-scale energy projects in an increasingly market-oriented environment.
Along with difficulties related to mechanisms and capital, the connection and capacity release process also presents a major challenge, requiring close coordination between the investor and relevant units. Throughout the implementation process, the project received close attention and guidance from the Government, the National Steering Committee on Power Development, the Ministry of Industry and Trade, and other relevant ministries and agencies; along with the cooperation of the People's Committee of Dong Nai province and units in the industry such as EVN, the National Power Transmission Corporation, the Electricity Trading Company, PV Gas, Tin Nghia Corporation, etc. This synchronized coordination has contributed to resolving many obstacles related to connection, capacity release, legal issues, and land; supporting the project to achieve its set goals.
According to Lilama General Director Nguyen Van Hung, Nhon Trach 3&4 is a major test of Vietnamese construction capabilities in the high-tech gas and electricity sector, but it is also a driving force for Lilama to affirm Vietnam's construction capabilities in large-scale energy projects, especially with new generation gas turbine technology. Lilama quickly mobilized skilled engineers and workers, deploying continuous construction on multiple fronts.
Lilama has mastered complex projects requiring precision, safety, and stringent international standards; flexibly applying technical solutions and promptly addressing obstacles to ensure progress. Thanks to the seamless coordination between the Investor, Samsung C&T, the turbine supplier GE, Lilama, and the support of central and local ministries and agencies, both units have been completed with quality exceeding requirements, fully meeting the commitments in the EPC contract.
Expressing appreciation for the support of the Government, ministries, local authorities, investors, and contractors in bringing the Nhon Trach 3&4 project to completion on schedule and ensuring quality, the representative of the Samsung C&T-Lilama consortium stated that the project was heavily impacted by the COVID-19 pandemic, followed by fluctuations in the global materials and equipment market, and the Red Sea crisis which disrupted the supply chain. All difficulties seemed insurmountable. However, thanks to the close and effective cooperation between all parties, all difficulties were gradually overcome, meeting the schedule and ensuring the highest quality.
Finishing and paving the way
Speaking at the event, Petrovietnam Chairman Le Manh Hung affirmed that the completion of the Nhon Trach 3&4 project, invested by PV Power, along with the Thi Vai LNG terminal project of PV GAS, has contributed to completing the chain of LNG terminal and power plant projects in line with Petrovietnam's development strategy to maximize the strengths of the units within the Petrovietnam ecosystem. This is also a concrete step in realizing Petrovietnam's integrated energy chain, value chain, and multi-layered ecosystem.
With the Nhon Trach 3&4 project commencing commercial operation, Petrovietnam's total number of power plants has reached 12, with a total capacity of 8,249 MW, accounting for 9.3% of the country's total power capacity and over 10% of the national electricity output. This demonstrates the innovative spirit of Petrovietnam and its member units. The successful investment in the Nhon Trach 3&4 LNG project serves as a foundation for Petrovietnam to continue researching and developing LNG power centers nationwide, ensuring energy security for the country's economic development and contributing to the realization of the commitment to net-zero emissions by 2050.
Petrovietnam and PV Power are committed to operating the Nhon Trach 3&4 power plant safely, stably, and efficiently, and to continuing to leverage their experience to invest in other power projects assigned by the Government as the main investor, bringing them into operation soon, maximizing the potential of Petrovietnam and its units, and contributing to the realization of Petrovietnam's strategic development goals as well as the country's growth targets, the Chairman of Petrovietnam affirmed.
According to the revised Power Development Plan VIII, by 2030, Vietnam will have an additional 15 LNG power plants with a total capacity of 22,524 MW, accounting for 12.3% of the total national power generation capacity. The total capital required for the implementation of these projects is expected to exceed US$22 billion, not including tens of billions of US dollars for the corresponding storage systems.
The fact that Nhon Trach 3&4 overcame many obstacles to reach the finish line with the "most" is not only an important milestone for the energy sector on its journey to reduce carbon emissions and move towards sustainable development, but also a positive signal for investors as the "bottleneck" of LNG power generation is gradually being resolved.
Currently, the electricity demand in the Southern key economic region is continuously increasing, and many traditional supply sources have reached their limits. Strategically located within the Nhon Trach Power Center – one of the most important power clusters in the South – Nhon Trach 3&4 will significantly increase the electricity supply capacity for the Southeast region, home to key industrial zones nationwide. This also affirms Vietnam's commitment to reducing emissions and achieving carbon neutrality by 2050.
In the context of the National Power Development Plan VIII, which requires gas energy, especially LNG, to play a regulating and balancing role in the system as renewable energy increases rapidly, Nhon Trach 3 and 4 are also important "pieces" that help improve the flexibility and stability of the national power grid; playing a crucial role as a base power source in the context of the strong development of renewable energy sources today.
LNG power generation helps reduce reliance on hydropower in the face of unpredictable climate change, while also providing a timely supplement to the system during periods of domestic gas shortages. Along with other emerging LNG projects, Nhon Trach 3&4 is the first building block laying the foundation for a modern and transparent gas energy market, and helps Vietnam integrate more deeply into the global LNG supply chain.
According to PV Power General Director Le Nhu Linh, the Nhon Trach 3&4 LNG power plant project has undergone 6 years and 8 months of investment and construction since the Prime Minister approved the investment plan in April 2019. The installation and construction period lasted over 3 years from the signing of the EPC contract on March 14, 2022, with the first brick laid on May 15, 2022. Nhon Trach 3 power plant will be connected to the national grid on February 5, 2025; and Nhon Trach 4 will be completed and connected to the grid on June 27, 2025. Today's inauguration marks the transition to commercial operation, providing stable electricity to the system, and also signifies the maturity of the investor and contractor.
On this occasion, PV Power is honored to receive a Certificate of Commendation from the Prime Minister.
Source: https://baotintuc.vn/kinh-te/nha-may-nhon-trach-3-va-4-mo-duong-cho-dien-sach-lng-20251214111254456.htm
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