Vietnam’s first LNG mega power project is about to ‘go up in flames’

Nhon Trach 3 & 4 Thermal Power Plant is the first LNG power project in Vietnam with an investment capital of 1.4 billion USD, expected to have its first fire on October 15, 2024.

Recently, according to information from the Vietnam Oil and Gas Group, General Director Le Ngoc Son led a delegation to visit, work and inspect the progress of the Nhon Trach 3 and 4 Power Plant Project in Dong Nai province.

At the working session, reporting to the delegation on the project progress, Mr. Le Ba Quy, Director of Nhon Trach 3 and 4 Power Project Management Board, said that up to now, the completed volume of the EPC Contract is estimated at about 94%. The Power Project Management Board (PVPP) and the Electricity Trading Company (EVNEPTC) signed the Power Purchase Agreement for the testing phase of Nhon Trach 3 Power Plant on May 27, 2024. PV Power and PV GAS have basically completed negotiations on the terms and contents of the GSA Contract, and are expected to sign the contract in the fourth quarter of 2024.

Leaders of Vietnam Oil and Gas Group inspect the progress of Nhon Trach 3 and 4 Thermal Power Plant projects

Based on the updated progress until the end of August 2024 of the EPC contractor, the testing work of each plant is expected to be carried out within 178 days. Specifically, Nhon Trach 3 Power Plant (NMĐ) is expected to start from the first ignition progress milestone on October 15, 2024, then test the guaranteed operating parameters, run reliably and operate commercially in April 2025. Nhon Trach 4 Power Plant will start from the first ignition progress milestone on December 22, 2024, test the guaranteed operating parameters, run reliably and operate commercially in July 2025.

Also at the meeting, the Management Board of Nhon Trach 3 and 4 Power Projects said that Nhon Trach 3 and Nhon Trach 4 Power Plant Projects are one of the important power source development projects, which are of great interest to the Government, ministries and branches, and are being monitored and directed with urgent progress requirements. Therefore, to ensure the overall progress of the project, PV Power recommends that the Group consult with the People’s Committee of Dong Nai province to direct Tin Nghia Corporation to soon sign a land lease contract for the remaining 6.4 ha of the project and sign a wastewater treatment contract to avoid affecting the progress of the trial run and applying for an environmental license; consult with Vietnam Electricity (EVN) to speed up the construction of the 500 kV transmission line projects of Nhon Trach 4 Power Plant – Phu My – Nha Be branch to connect, supply electricity for trial run and release the capacity of Nhon Trach 4 Power Plant;…

Attending the meeting, Petrovietnam Deputy General Director Phan Tu Giang and representatives of PV Power, Lilama, Samsung C&T, and PV GAS gave opinions and solutions to overcome current difficulties, as well as prepare for the first ignition in October 2024 of Nhon Trach 3 Power Plant. From there, complete the next steps to meet the commercial operation schedule in April 2025.

Speaking at the meeting, Petrovietnam General Director Le Ngoc Son highly appreciated the efforts of all parties to speed up the project’s progress and complete the steps to prepare for the first ignition of Nhon Trach 3 Power Plant.

Petrovietnam General Director emphasized that Petrovietnam has taken a step forward in implementing the LNG sector, the LNG gas project chain. This is the first project chain that Petrovietnam has implemented in accordance with the policy of Conclusion 76-KL/TW of the Politburo. To successfully implement this orientation, as well as the LNG Gas – Power chain, the Nhon Trach 3 and 4 Power Project is a very important link. Therefore, the Group and related units will focus on resolving difficulties in the spirit of “One team, one goal”, soon putting the project into operation according to the set schedule.

Construction site of Nhon Trach 3 and 4 Thermal Power Plant Project

Regarding the difficulties in the power transmission grid projects to release the capacity of Nhon Trach 3 and Nhon Trach 4 Power Plants, previously, the Office of the State Steering Committee for key national programs, works and projects, and key energy sector projects (Steering Committee) had a working session with Dong Nai province.

Speaking at this meeting, Mr. Hoang Trong Hieu – Deputy Chief of the Steering Committee Office said: The completion of the 220kV and 500kV transmission lines connecting Nhon Trach 3 and Nhon Trach 4 Power Plants with the national power system will contribute to increasing the total power source capacity by more than 1,600MW to serve the country’s socio-economic development and people’s lives. With that importance, on August 30, 2024, the Government Office issued a notice of conclusion conveying the direction of Deputy Prime Minister Tran Hong Ha requesting the People’s Committee of Dong Nai province to direct the handling of difficulties and obstacles in the work of site clearance for synchronous power grid projects to release the capacity of power plants. Strive to hand over the site in October 2024 to be able to complete the project soon, ensuring the release of capacity for Nhon Trach 3 and 4 Power Plant Projects by the end of 2025.

The leaders of the Steering Committee Office requested EVN/EVNNPT to continue to proactively follow and closely coordinate with the People’s Committee of Dong Nai province, departments, branches and local authorities in removing obstacles and difficulties related to planning, land use plans and compensation for site clearance of projects in order to promptly hand over the site to the construction contractor and organize construction as soon as the site is received, ensuring technical requirements and construction quality, meeting the commercial operation schedule of Nhon Trach 3 and Nhon Trach 4 Power Plants.

Units need to focus highly, promote the spirit of implementing the 500kV transmission line project circuit 3 Quang Trach – Pho Noi, work with the highest determination, the greatest effort to bring the project to the finish line. In particular, units report weekly to EVNNPT on the implementation status of the cluster of projects serving the trial power supply and capacity release of Nhon Trach 3 and 4 Power Plants.

Along with that, the representative of the working delegation also said that under the direction of the Prime Minister, the Electricity sector has completed the 500kV line project, circuit 3, Quang Trach – Pho Noi in record time, a miracle for the country. In particular, the localities where the project passes through, from the Provincial Party Secretary to the Chairman of the People’s Committee of the provinces, districts and communes, all took drastic measures to hand over the site within more than 2 months from the time of assignment. Therefore, the representative of the working delegation suggested that Dong Nai province also needs to promote the spirit of the 500kV line, circuit 3, mobilizing the strength of the entire political system. At the same time, the Department of Industry and Trade needs to advise the Provincial People’s Committee to have a plan and actions to periodically discuss solutions every month to remove obstacles as quickly as possible.

Nhon Trach 3 and 4 Power Plant Project is a national key project, a billion-dollar project (1.4 billion dollars) with the following “best” features: The project uses imported LNG gas fuel for the first time with the most modern technology in the world at this time; next, the project has a generator with the highest capacity and efficiency of gas turbines in the world (over 60%)…

When put into operation, the project will contribute to promoting the clean energy transition in Vietnam and realizing the commitment to net zero emissions by 2050. In addition, the project is of great significance in ensuring national energy security when supplying the grid with about 9 billion kWh/year. According to PV Power General Director Le Nhu Linh, the Nhon Trach 3 and 4 Power Plant projects will open a new chapter in the formation and development of the LNG project chain in Vietnam. This is a project that contributes to creating a position for PV Power as well as the Vietnamese energy industry.

According to Industry and Trade Newspaper