Vietnamese PM underscores competitiveness of power prices at LNG plant launch
VOV.VN - Prime Minister Pham Minh Chinh emphasized that the success of the Nhon Trach 3 and Nhon Trach 4 power plant projects serves as a benchmark model, provides impetus and confidence, and lays the foundation for the continued implementation of key national energy infrastructure projects in the period ahead.
The Vietnam National Industry and Energy Group (Petrovietnam) and PetroVietnam Power Corporation (PV Power) held an inauguration ceremony for the Nhon Trach 3 and Nhon Trach 4 power plants on the morning of December 14 at Ong Keo Industrial Park in Dai Phuoc Commune, northern Dong Nai province.
This is the first project cluster in Vietnam to use imported liquefied natural gas (LNG) as fuel, marking a pioneering step in the country’s roadmap to reduce greenhouse gas emissions and realize its net-zero emissions target by 2050.
After six years and eight months since the Prime Minister approved the investment policy for the Nhon Trach 3 and Nhon Trach 4 power plant projects, Le Duy Linh, General Director of PV Power and investor of the projects, announced with satisfaction that the two power plants,the first LNG projects in Vietnam featuring large capacity and among the most advanced technologies, have been completed.
The projects meet all stringent requirements stipulated in the EPC contract, adhere strictly to the schedule under Power Development Plan VIII, and keep total costs within the approved investment ceiling.
“Today, the efforts and aspirations of PV Power, together with the expectations of leaders at all levels, have become a reality. The Nhon Trach 3 and Nhon Trach 4 power plants are ready for commercial operation starting today,” Le Duy Linh said.
With a combined capacity of 1,624 MW, the Nhon Trach 3 and Nhon Trach 4 power plants are expected to supply more than 9 billion kWh annually once operating stably, providing a major baseload power source for the national grid, particularly in southern Vietnam. The complex will also play a flexible role, supporting dispatch and system balancing as the share of renewable energy continues to rise.
The projects are built to modern technological standards, using turbines with the highest capacity and efficiency currently available worldwide. As a result, the plants achieve an efficiency rate of 62-64%, among the highest globally, meet strict emissions standards, and allow flexible fuel conversion, from LNG to co-firing hydrogen at up to 50%, with the potential to transition to 100% hydrogen in the future.
The projects have completed an end-to-end operational model, ensuring stability, flexibility, and efficiency. This model serves as a template for LNG power centers that Petrovietnam plans to develop in the future, laying the groundwork for a modern gas-fired power era in Vietnam.
As Vietnam’s first LNG projects, according to Nguyen Van Hung, General Director of the Vietnam Machinery Installation Corporation (Lilama), the Nhon Trach 3 and 4 power plants faced numerous unprecedented challenges.
Speaking at the ceremony, PM Pham Minh Chinh said that bringing the Nhon Trach 3 and Nhon Trach 4 gas-fired power complex into commercial operation, the first LNG power plants in Vietnam, constitutes a particularly important “missing piece” in strengthening and safeguarding national energy security, while meeting the requirements for rapid and sustainable development in the new period.
The Government chief affirmed that, with more than 9 billion kWh supplied each year, the commissioning of Vietnam’s first LNG power complex has laid the foundation for the country’s gas power market, marking a major step forward in building a flexible, clean, stable, and modern national energy system, featuring the lowest investment cost, the largest scale, the most advanced technology, the highest capacity, and the most competitive commercial power prices.
Highlighting the scale, intellect, and determination of the Vietnamese people, he noted that the project contributes to the country’s economic development at both regional and local levels.
According to the PM, the commercial operation of the Nhon Trach 3 and Nhon Trach 4 power complex underscores Vietnam’s efforts to honor its net-zero commitment and achieve carbon neutrality by 2050, as pledged at COP26, while ensuring energy security alongside environmental and natural resource protection.
It also marks a fundamental shift in mindset, development models, and trends toward green, sustainable, and modern energy sources, cutting carbon emissions by 40% compared with coal-fired power and 30% compared with oil-fired power. In addition, the project provides a solution to the challenge of national energy security, serving as a transitional anchor that helps minimize grid instability as renewable energy capacity expands rapidly.
The project’s success not only spreads momentum and inspiration but also offers valuable lessons for future renewable energy projects, he said, adding that the greater the difficulties and challenges, the heavier the responsibilities, the stronger the need for unity, dynamism, creativity, and the courage to think boldly, act decisively, and make breakthroughs for the common cause and national interest.
To ensure efficient operation and fully realize the project’s strategic role in safeguarding national energy security, PM Chinh called on the national energy group to provide direction and leadership for the entire sector, serve as a pillar of energy security, and realize strategies for digital transformation, green growth, and energy transition. Operations must strictly comply with international safety standards, optimize efficiency, and meet environmental regulations, he emphasized.
“The success of the Nhon Trach 3 and 4 power plant projects is a benchmark model, a source of momentum and confidence, and a foundation for us to continue implementing key national energy infrastructure projects on a larger scale, with more advanced technologies, higher standards, and greater productivity and quality,” the PM said. “From this model, we must not stop at replication but strive to surpass ourselves, further improve productivity and quality, and continue conquering new heights and setting new records in quality, progress, safety, and price competitiveness.”
On this occasion, PM Chinh reaffirmed the Government’s commitment to accompanying stakeholders, listening to their concerns, resolving obstacles, and creating the most favorable conditions for all parties involved to fully utilize their capabilities and successfully fulfill their tasks and missions.