Nhon Trach 3&4 Power Plant located in Nhon Trach District, Dong Nai Province is a national key project, invested by PV Power, with a total investment of 1.4 billion USD, capacity of 1,624 MW. This is the first LNG fueled power plant project in Vietnam, with modern technology (gas turbine) provided by GE (USA) with the highest capacity and efficiency today. It is expected that when officially generating commercial electricity, the project will add more than 9 billion kWh of commercial electricity/year to the power system.
Since the project was approved in principle, PV Power has actively implemented the investment steps. PV Power has conducted a bidding process to select a qualified and experienced EPC contractor, the Samsung C&T Joint Venture and Vietnam Machinery Installation Corporation (Lialama). Currently, the project is entering the final stage of construction and is undergoing trial operation.
The project has also completed capital arrangement. Specifically, PV Power has signed a loan worth 200 million USD with SMBC/SACE, a loan worth 4,000 billion VND with Vietcombank and recently a credit contract worth 521.5 million USD signed with a consortium of two banks Citi & ING insured by KSURE & SERV.
Nhon Trach 3&4 project is the first LNG power plant in Vietnam, making the PPA negotiation process difficult due to the lack of precedent. Signing the initial PPA helps PV Power sign the Gas Purchase Agreement (GSA) early, ensuring LNG volume, stable delivery plan at reasonable prices. At the same time, PPA is a prerequisite for international credit institutions to consider lending to PV Power.
Since 2019, PV Power and EVNEPTC have negotiated a power purchase agreement in accordance with Circular 57/2020/TT-BCT, under the direction of the Government and ministries. The PPA contract ensures the harmony of interests of the parties and the country, and is the basis for the project to operate commercially after construction is completed.
The PPA contract signed between the two units not only marks an important milestone and condition for Nhon Trach 3&4 Power Plants to enter commercial operation, but also creates a premise and direction for negotiating PPA for other LNG-powered power projects in Power Plan VIII.
PV Power is a member of Petrovietnam with 17 years of experience, having invested in and operated 7 power plants and renewable energy projects, with a total capacity of over 4,209 MW. To contribute to achieving the Net Zero 2050 target, PV Power is a pioneer in investing in imported LNG power projects, including Nhon Trach 3 and 4 with the goal of advanced technology, high efficiency, fast progress and low cost.
