Attending the signing ceremony, on behalf of Vietnam Electricity Group (EVN), there were Mr. Dang Hoang An - Chairman of EVN Board of Directors; representatives of the Board of Directors, Board of General Directors, leaders of the group's professional departments; and leaders of member units.
On the side of Vietnam Oil and Gas Group (Petrovietnam), there were Mr. Le Manh Hung - Chairman of the Board of Directors of Petrovietnam; Mr. Le Ngoc Son - General Director; representatives of the Board of Directors, Board of Management, leaders of the Group's professional departments; leaders of member units. On the side of PetroVietnam Power Corporation - Joint Stock Company (PV Power), there were Mr. Hoang Van Quang - Chairman of the Board of Directors; Mr. Le Nhu Linh - General Director; and leaders of the Board of Directors, Board of Management, and professional departments of PV Power.
At the ceremony, Mr. Le Nhu Linh - General Director of PV Power and Mr. Le Khac Hung - Director of EVNEPTC - signed the PPA Contract for Nhon Trach 3&4 Power Plant. This is the first power plant using liquefied natural gas (LNG) in Vietnam, located in Nhon Trach district, Dong Nai province, with a total investment of up to 1.4 billion USD and a capacity of 1,624 MW. Modern gas turbine technology provided by GE (USA) ensures the plant has the highest operating efficiency today. It is expected that when put into commercial operation, Nhon Trach 3&4 Power Plant will provide more than 9 billion kWh of commercial electricity per year, contributing to ensuring energy security and promoting the socio-economic development of the country.
Since the project was approved in principle, PV Power has quickly and systematically implemented the investment steps. From the bidding stage to select the EPC contractor to arranging capital sources, everything was done professionally. PV Power selected the Samsung C&T Joint Venture and Vietnam Machinery Installation Corporation (Lilama) as the EPC contractor for the project. Large loans such as 200 million USD from SMBC/SACE, 4,000 billion VND from Vietcombank and 521.5 million USD from the consortium of Citi & ING Banks insured by KSURE & SERV were also successfully signed, creating a solid financial foundation for the project to be implemented on schedule.
In the field of power plant investment, the Power Purchase Agreement (PPA) is one of the most important agreements, deciding the success or failure of the project. For Nhon Trach 3&4 Power Plant, the signing of the PPA has a special significance because this is the first LNG power plant project in Vietnam. Due to the lack of precedent and complete legal framework, the PPA negotiation process was complicated and prolonged. However, with the close direction of the Government, the Ministry of Industry and Trade, the Committee for State Capital Management at Enterprises, the Vietnam Oil and Gas Group and the Vietnam Electricity Group, PV Power and EVNEPTC overcame the difficulties and reached the final agreement.
Mr. Hoang Van Quang - Chairman of PV Power's Board of Directors - emphasized: "The signing of the PPA Contract not only marks an important milestone for Nhon Trach 3 & 4 Power Plants to soon enter commercial operation, but also lays the foundation for us to sign the Gas Purchase Agreement (GSA). This is a premise to help PV Power and its partners arrange a stable annual LNG supply, ensuring a gas delivery plan at the most reasonable price."
The PPA between PV Power and EVNEPTC is also a prerequisite for international credit institutions to consider financing the project, while also creating orientation and foundation for negotiating other LNG power projects in the future. The Nhon Trach 3&4 project is one of the pioneering projects in the Power Plan VIII, opening up opportunities for the development of the gas-fired power industry in Vietnam, contributing to making the country an attractive destination for clean energy investors in the world.
With 17 years of experience in investing, constructing and operating 7 power plants and renewable energy projects with a total capacity of over 4,209 MW, PV Power has been affirming its leading position in the field of developing power projects using imported LNG. Nhon Trach 3 & 4 Power Plants are expected to make an important contribution to the roadmap to realizing Vietnam's Net Zero goal by 2050, and at the same time, it is a milestone affirming PV Power's maturity and outstanding capacity in the energy sector.
The signing of the PPA for Nhon Trach 3 & 4 Power Plants not only ensures the smooth commercial operation of the project but also creates a solid foundation for future LNG power projects. This is an important milestone, marking a great step forward for the Vietnamese electricity industry in diversifying energy sources and moving towards sustainable, environmentally friendly development, meeting the increasing demand for energy in the context of integration and development.
