La Hong Ky, representing the Office, announced at the December 18 forum on the global LNG distribution chain that only two out of the 14 gas-fired thermal power projects currently under construction are expected to be operational by the second and third quarters of 2025. These projects, Nhon Trach 3 and Nhon Trach 4, rely on imported LNG.
Two notable projects are part of Vietnam's LNG power portfolio. Additional LNG power initiatives may be finalized prior to 2030, such as the facilities at the O Mon Power Center and Hiep Phuoc Phase 1, which together will have a total capacity of 6,634MW. However, the viability of these projects hinges on the successful completion of negotiations for the power purchase agreement (PPA), gas purchase agreement (GSA), and capital arrangements by 2026. Vietnam's LNG-fueled power plants are facing significant delays.
Addressing the potential risks of delays in LNG project timelines, Mr. La Hong Ky highlighted several challenges. Firstly, in certain provinces, the approval process for investment policies and the bidding to select investors remains convoluted and sluggish.
Furthermore, he added that the identification of the investor responsible for the synchronous connection lines necessary to facilitate capacity for LNG thermal power plants is still unclear. This leads to delays in the implementation of power transmission projects and connection agreements to release capacity.
Worse, some foreign investors have additionally demanded that Vietnam offer government guarantees concerning matters like foreign currency conversion, payment, and the advancement of power transmission lines, which complicates the implementation of LNG projects.
Mr. La Hong Ky emphasized the importance of establishing suitable mechanisms and policies promptly to eliminate existing legal and financial obstacles, which is essential for the timely execution of LNG projects.
