Power purchase agreement signed and construction launched for Hiep Phuoc LNG Power Plant (Phase 1)

Representatives of Vietnam Electricity (EVN) and Hiep Phuoc Power Company Limited sign the Power Purchase Agreement (PPA) for the Hiep Phuoc LNG Power Plant (Phase 1).

This marks the second LNG-to-power PPA in Vietnam, following the Nhon Trach 3 and 4 LNG Power Plants, and the first LNG PPA implemented under the Government’s Decree No. 56/2025/ND-CP (as amended by Decree No. 100/2025/ND-CP) on incentive mechanisms for LNG-fired power projects. The milestone reflects significant progress in completing the legal framework and accelerating LNG power development in Vietnam.

The Hiep Phuoc LNG Power Plant (Phase 1) is a key national project developed under a BOO (Build-Own-Operate) model by Hiep Phuoc Power Company Limited. The project has a total investment of approximately VND 18.9 trillion (around USD 892 million) and an installed capacity of 1,200 MW. It will utilize advanced gas turbine technology supplied by Siemens, ensuring high efficiency and reduced emissions.

Delegates perform the groundbreaking ceremony for the Hiep Phuoc LNG Power Plant (Phase 1).

At the ceremony, representatives highlighted that the PPA signing and project groundbreaking demonstrate a strong commitment to developing cleaner, more flexible power sources while contributing to national energy security amid rising electricity demand.

Once commercially operational, the plant is expected to generate over 7 billion kWh of electricity annually, supporting a stable power supply for Vietnam’s socio-economic development.

Under the revised Power Development Plan VIII, Phase 1 of the project is scheduled to commence operation in 2028./.