$7.7 bln LNG Power Plant To Begin In Vietnam

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Groundbreaking LNG Power Project Set for Construction in Hai Phong

A massive 4,800 MW LNG-to-power plant, representing a total investment of $7.7 billion, is scheduled to commence construction in late September in the northern port city of Hai Phong, marking a significant step in Vietnam’s energy strategy.

The Hai Phong LNG power plant is a crucial undertaking jointly developed by a powerful consortium comprising Vietnam’s leading private conglomerate, Vingroup, and its specialized energy arm, VinEnergo.

The Hai Phong Economic Zone Authority officially issued the investment registration certificate for the key project on June 23, 2025.

According to the detailed plan, the final plant will occupy an area of over 98.5 hectares of land situated within the Tan Trao Industrial Park.

The development and operation will proceed in two distinct phases.

The first phase is designed to achieve a capacity of 1,600 MW, which is expected to generate approximately 9.6 billion kWh of electricity annually.

The second, more substantial phase will raise the plant’s total capacity to 3,200 MW, with an anticipated annual output of 19.2 billion kWh.

Once the entire facility is fully operational, the Hai Phong LNG power plant is projected to supply an impressive 28.8 billion kWh of electricity per year, thereby contributing significantly to meeting the surging energy demands of the Northern Key Economic Region and stabilizing the power supply for the country as a whole.

This large-scale project is vital for supporting Vietnam’s shift towards cleaner energy sources.

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Advanced Gas Turbine Technology and Infrastructure Support

The Hai Phong LNG power plant will utilize highly advanced combined-cycle gas turbine technology, which is uniquely suited for efficient use of imported liquefied natural gas (LNG), requiring specialized port infrastructure to ensure a continuous fuel supply.

The Hai Phong LNG power plant will incorporate six state-of-the-art combined-cycle gas turbine (CCGT) units, with each unit boasting a capacity of 800 MW.

The system will adopt an efficient 1-1-1 CCGT configuration, a design where the hot exhaust gas expelled from the primary gas turbines is strategically harnessed to produce steam that subsequently drives supplementary steam turbines.

This configuration significantly enhances overall energy efficiency and simultaneously minimizes thermal waste.

Crucially, this advanced setup is perfectly suitable for using imported LNG as the primary fuel source without requiring supplementary or less efficient fuels.

To fully support the immense infrastructure requirements of the project, the Hai Phong People’s Committee has submitted a proposal to the Prime Minister and the Ministry of Construction to approve the formal inclusion of a dedicated LNG terminal into two major national plans.

These plans are the Master Plan on National Port System for 2021-2030, with a long-term vision to 2050, and the Detailed Plan on Land and Water Areas of Hai Phong Seaport System for 2021-2030, also looking toward 2050.

This infrastructure, which Vingroup had earlier proposed to include an LNG terminal and a floating storage regasification unit (FSRU), is essential for serving the energy needs of the LNG power plant project.

Project Acceleration and Strategic Significance for Hai Phong

The project is moving forward rapidly, with contractors working around the clock to meet the construction timeline, underscoring the critical strategic significance of the Hai Phong LNG power plant for the city’s development goals.

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The selected construction site for the terminal infrastructure is strategically located at the mouth of the Van Uc River, offering a depth of -16 meters, which is deep enough to accommodate large LNG carriers of up to 180,000 cubic meters or even larger vessels.

The planned development for the terminal infrastructure includes one primary port berth, one floating storage and regasification unit (FSRU) for processing the LNG, and a dedicated pipeline system to ensure a seamless supply of energy to the LNG power plant.

The official groundbreaking ceremony for the Hai Phong LNG power plant project is expected to take place imminently at the end of September.

Currently, contractors are intensely accelerating preparations, mobilizing heavy machinery, and organizing construction work around the clock in three shifts per day, all aimed at completing the necessary foundational infrastructure in time for the ceremony.

On September 13, Vice Chairman of the Hai Phong People’s Committee Le Anh Quan conducted a crucial field inspection of the planned project site.

He emphasized that the Hai Phong LNG power plant is a strategically significant endeavor for the city’s future development and has been specifically selected as a key project to commemorate the first Congress of the Hai Phong Party Organization for the 2025-2030 term.

Quan issued a direct instruction to the project developer, all relevant agencies, and local authorities to urgently complete all necessary procedures to ensure that the groundbreaking ceremony takes place exactly as scheduled, coinciding with the Party Congress at the end of September.

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