An LNG shipment arrives at the Thi Vai Port Complex in southern Vietnam (Photo: VNA) According to the Ministry of Industry and Trade (MoIT), severalcoal-fired power projects are awaiting approval to transition into projectsutilising LNG. Several provinces, including Thanh Hoa, Nghe An and Quang Tri,have voiced their opposition to additional coal-fired plants in favour ofgas-fired plants.
As the country's hydropower reaches its maximum capacity and soaringdemand for electricity in the coming decades, the development of gas-firedpower electricity plants will play a vital role in ensuring electricity supplyfor the economy, as well as realising the gradual transition to cleaner energyin Vietnam.
According to a recent report by the MoIT, there are currently fivecoal-fired power projects facing delays and difficulties in securing capital: VinhTan III Thermal Power Plant (1,980 MW), Song Hau II Thermal Power Plant (2,120MW), Quang Tri Thermal Power Plant (1,320 MW), Cong Thanh Thermal Power Plant(600 MW), and Nam Dinh I Thermal Power Plant (1,200 MW).
The investor of the Quang Tri Thermal Power Plant project,Thailand International Power Company (EGATi), has officially announced thesuspension of the project. Regarding the Cong Thanh Thermal Power Plantproject, located in Thanh Hoa province, its investors - Cong Thanh Group andthe province are seeking approval to convert it into an LNG power project.
A British Petroleum (BP) representative said the group has been indiscussion with the Cong Thanh Group on the possibility of collaboration on anLNG power plant, along with two other international partners.
"The proposed project with Cong Thanh aligns with BP'ssustainable goals, including providing cleaner energy for the economy andsupporting the communities where we operate," said the representative.
According to Dau Tu (Investment)Newspaper's exclusive source, General Electric (GE) is currently engaging intechnical discussions on the project and is ready to participate if cooperationopportunities arise.
Meanwhile, according to industry insiders, the conversion of the CongThanh Thermal Power Plant into an LNG project, if approved, could become amodel for other projects, which have been experiencing delays.
Regarding the issue, Lam Nguyen Phuong Thao, a lawyer atRussin&Vecchi Vietnam Company, believed that if approved, this could becomea model for other delayed projects.
Thao said the conversion would create hundreds of jobs inconstruction, engineering and infrastructure while reducing the country'sdependence on imported coal.
On the other hand, upfront costs, including LNG infrastructure anda stable supply source, must be readily available. The pros, however, willlikely outweigh the cons.
"This is a necessary step in Vietnam's transition to acleaner and more sustainable energy future," she said.
In a recent exchange with the press, Minister of Industry andTrade Nguyen Hong Dien said the development of LNG power projects is forensuring electricity supply for economic and social development in the2021-2030 period and beyond.
He said the ministry has been in close contact with investors andlocal authorities to discuss matters related to the impact on electricityprices, the capacity of project investors, and the technical conditions forproject conversion.
John Rockhold, Head of the Electricity and Energy Working Group ofthe Vietnam Business Forum, said the conversion of coal-fired projects intogas-fired ones is a crucial step in the development of power sources in Vietnam.
The reason is that LNG has up to 50% lower carbon emissionscompared to coal, and credit institutions are tightening funding for coalprojects to meet international commitments on emission reduction. He emphasisesthe importance of infrastructure, deep-water ports, electricity prices, and,especially, government guidance in ensuring successful conversions.
Dr Ngo Duc Lam, former deputy director of the Energy Instituteunder the MoIT, said that accelerating the conversion of coal projects,especially those with existing infrastructure, will help address demand for thecountry's power-hungry northern regions./.
