Inauguration of Nhon Trach 3 and 4 LNG Power Plants

The project is invested by PetroVietnam Power Corporation (PV Power), a member of the Vietnam National Industry – Energy Group (Petrovietnam - PVN). The EPC contractor is the Lilama - Samsung C&T consortium. With a total investment of approximately USD 1.4 billion, the project features a large scale, including about 40,000 tonnes of steel structures and equipment, and 120,000 cubic meters of concrete.

With a combined capacity of 1,624 MW, Nhon Trach 3 and 4 are expected to supply more than 9 billion kWh of electricity annually once operating stably, providing an important baseload source for the national power system, particularly in southern Vietnam. The complex also serves as a flexible power source, supporting system dispatch and balancing as the share of renewable energy continues to increase.

The project utilizes advanced technology, employing GE’s (United States) 9HA.02 generation gas turbines, which achieve an efficiency of 62-64%, among the highest in the world today. This technology meets stringent emissions standards and allows flexible fuel conversion from LNG to co-firing with up to 50% hydrogen, with the potential to transition to 100% hydrogen in the future.

The Prime Minister affirmed: The success of the Nhon Trach 3 and 4 power plant projects is a model of excellence, a driving force, a source of confidence, and a foundation for us to continue conquering new records. Photo: VGP/Nhat Bac.

Speaking at the event, Prime Minister Pham Minh Chinh affirmed that Nhon Trach 3 and 4, the first LNG power plants in Vietnam, represent a crucial “missing piece” in strengthening national energy security and meeting the country’s requirements for rapid and sustainable development in the new phase.

The Prime Minister emphasized that ensuring energy security is a strategic foundation of national security, especially amid volatile global energy markets, accelerating energy transition, and increasingly complex climate change challenges. In practice, every 1% of economic growth requires electricity demand to rise by around 1.5-2%, while the country’s current peak electricity demand stands at approximately 54,500 MW, necessitating an annual addition of 6,500-8,200 MW of new power capacity.

With over 9 billion kWh generated annually, the project lays the foundation for Vietnam’s LNG-to-power market and marks an important step in building a clean, flexible, and modern energy system, highlighted by “six firsts”: the lowest investment cost, the largest scale, the most advanced technology, the largest capacity, the shortest EPC contractor selection period, and the most competitive commercial electricity price.

The Prime Minister and delegates perform the ceremony of pressing the button to inaugurate the project. Photo: VGP/Nhat Bac.

The Prime Minister noted that the project carries significant strategic value, contributing to Vietnam’s commitment to achieving net-zero emissions by 2050; reducing carbon emissions by about 40% compared to coal-fired power; playing a critical transitional role in the energy transition; promoting development in the Southern Key Economic Region; and affirming the leading role of state-owned enterprises in ensuring energy security and sustainable development.

He also acknowledged the unprecedented challenges faced by the project, including the impacts of the COVID-19 pandemic, international financing without government guarantees, the lack of a comprehensive policy framework for LNG power, land clearance issues, and material supply constraints. Nevertheless, under the strong direction of the Government and the concerted efforts of all stakeholders, the project was completed on schedule, ensuring quality, safety, and environmental compliance.

The Prime Minister commended PVN, PV Power, relevant ministries, local authorities, and domestic and international contractors, and expressed his gratitude to residents for relocating and supporting the project’s implementation. He affirmed that the success of Nhon Trach 3 and 4 serves as a model, creating momentum and confidence for the development of future national key energy projects.

The Government reaffirmed its commitment to accompanying businesses, removing obstacles, improving institutional frameworks, and fostering a transparent and favorable investment environment to maximize the efficiency of energy projects, enhance national competitiveness, and ensure energy security in Vietnam’s new era of development./.