US firm proposes two LNG projects in Van Phong EZ
Authorities of the south central coastal province of Khanh Hoa have sought the Prime Minister’s backing of two major projects with total investment of more than US$27 billion proposed by the Millennium Energy Corp of the US at the Van Phong Economic Zone (EZ).
The projects aim to build a power plant fuelled by liquefied natural gas (LNG) and an LNG depot in the southern part of the Van Phong EZ.
The Khanh Hoa People’s Committee requested that the PM instruct the Ministry of Industry and Trade to consider and add the projects to the national power development plan and the master plan on national energy, both for the 2021-30 period, with a view to 2050, so as to enable the investor to carry out the projects in line with the regulations.
The US company surveyed the Van Phong EZ last July and signed a memorandum of understanding with the EZ on the building of documents to invest in the two projects, using about 360 ha of land.
It proposed the construction of a US$4.7 billion LNG-fuelled power plant with a capacity of 4,800MW with four turbines which will be built in two phases.
Commercial operation of the first phase is scheduled to begin some time during 2027-2030 while the second one is slated for after 2030.
Regarding the Van Phong LNG depot, the US firm is set to build a storage facility with a total capacity of 17 million cu.m., with an aim to supply LNG to its own plant and other projects in Vietnam, towards exporting the gas to other Asian nations. Total investment in the facility is estimated at US$22.5 billion.
Khanh Hoa’s Van Phong EZ so far has attracted 153 investment projects with a combined registered capital of US$4.1 billion, including 30 foreign projects nearing US$1.4 billion.
Ninety four projects have come into operation.
The EZ is already home to a 1,320-MW thermal power plant costing US$2.58 billion and a petrol and gas terminal worth US$125 million, among others.