Regional LNG: PV GAS signs 25-year LNG supply contract for Vietnam power plants
Tuesday, March 11 2025 - 07:07 AM WIB
By Romel S. Gurky
Petrovietnam Gas Corporation (PV GAS) and Petrovietnam Power Corporation (PV Power) have signed a long-term contract for the supply of LNG to support the commercial operations of the Nhon Trach 3 and Nhon Trach 4 power plants. This makes PV GAS the first and only long-term LNG supplier for power plants in Vietnam.
Following the initial LNG contract for the commissioning of the Nhon Trach 3 and Nhon Trach 4 power plants, which was signed by both parties in Q4 2024, PV GAS and PV Power have now finalized a 25-year agreement to supply LNG for the entire commercial operation of these two plants, effective in 2025, PV GAS announced on its website.
The Nhon Trach 3 and Nhon Trach 4 power plants, a national key project, are located in the Ong Keo Industrial Zone, Phuoc Khanh Commune, Nhon Trach District, Dong Nai Province. With a combined capacity of 1,624 MW and a total investment of US$1.4 billion, the project is set to contribute approximately 9 billion kWh of electricity annually to the national grid. It is the only one of the 13 LNG-to-power projects under Vietnam’s Power Development Plan VIII (PDP VIII) that has been implemented and remains on track for timely operations.
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The signing of this LNG supply contract further solidifies PV GAS's position as a leader in Vietnam’s gas and LNG sector. It is currently the only entity capable of meeting the growing demand for clean energy in the country’s socio-economic development. PV Power, too, has achieved a major milestone with its investment in large-scale LNG-to-power projects and the conversion of some natural gas-fired plants to LNG. Both corporations are playing a pivotal role in the transition to imported LNG as the primary fuel source for gas-fired power plants in Vietnam, gradually replacing the depleting natural gas reserves in the Southeast region.
This LNG contract also underscores Petrovietnam’s support for the national energy transition and aligns with the government’s commitments made at COP26 to achieve Net Zero emissions by 2050. It further supports the objectives of the Power Development Plan VIII.
Through determined coordination and negotiation, PV GAS and PV Power have successfully optimized the energy value chain within Petrovietnam, contributing to enhanced energy security for the Southeast region.
Editing by Reiner Simanjuntak