PV GAS signs 25-year contract to distribute LNG fto Nhon Trach 3 and Nhon Trach 4 power plants of PV Power
Petrovietnam Gas Corporation (PV GAS) and Petrovietnam Power Corporation (PV Power) just signed a contract regarding the supply of LNG for the commercial operations of Nhon Trach 3 and Nhon Trach 4 power plants, making PV GAS the first and only long-term LNG power supplier in Vietnam.
Following the LNG contract for the commissioning of Nhon Trach 3 and Nhon Trach 4 power plants, signed by both parties in 2024’s Q4, a contract to supply LNG for the entire commercial operations of these two plants for 25 years, effective 2025, was just concluded by PV GAS and PV Power.
Thi Vai LNG Terminal (PV GAS)
Nhon Trach 3 and Nhon Trach 4 power plants are a national key project, constructed in Ong Keo Industrial Zone, Phuoc Khanh Commune, Nhon Trach District, Dong Nai. The project has a capacity of 1,624 MW and a total investment of 1.4 billion USD. Once operational, the project will contribute approximately 9 billion kWh of electricity annually to the national grid. This is the only one among the 13 LNG-to-power projects under the Power Development Plan VIII (PDP VIII) that has been implemented and is on schedule in terms of operations.
The signing of this LNG contract once again affirms PV GAS' position as a pioneer and leading enterprise in the gas and LNG sector in Vietnam. It is currently the only entity capable of meeting the increasing demand for clean energy for the country's socio-economic development. PV Power has also achieved its first significant success in investing in large-scale LNG-to-power projects, along with the transition of some natural-gas-fired plants to LNG. Both Corporations have truly marked their presence in the roadmap to make imported LNG the primary fuel source for gas-fired power plants in Vietnam, gradually replacing the rapidly declining natural gas reserves in the Southeast region.
PVN President and CEO Le Ngoc Son leads delegation to Nhon Trach 3 Power Plant with PV GAS and PV Power
Moreover, the LNG contract is also evidence of Vietnam Oil and Gas Group (Petrovietnam)’s support for the national energy transition, as well as helps to fulfil the Government's commitments at COP26 to achieve Net Zero by 2050 and the requirements of the Power Development Plan VIII.
With determination in coordinating and negotiating, PV GAS and PV Power have successfully maximized the energy value chain within Petrovietnam, contributing to ensuring energy security for the Southeast region.