On the morning of 14/12, the Nhon Trach 3 and 4 LNG-to-power plants were inaugurated. This marks Vietnam's first imported LNG-to-power project complex, with Petrovietnam Power Corporation (PV Power) as the investor. The complex, totaling USD 1,4 billion in investment, is set to begin commercial operation from 1/1/2026.
Prime Minister Pham Minh Chinh stated that the operation of the first LNG-to-power complex is "a model, a crucial piece, demonstrating the spirit of overcoming challenges" in ensuring national energy security in the new era. This project is vital for meeting the nation's growing energy demands and supporting its transition towards cleaner energy sources.
Significantly, this is the first power project in Vietnam to successfully secure over USD 1 billion in international loans without government guarantees. Despite this financial achievement, its implementation faced many challenges due to the lack of specific mechanisms for LNG-to-power and difficulties in negotiating power purchase agreements (PPA) and environmental commitments.
The Nhon Trach 3 and 4 complex is designed to supply over 9 billion kWh annually at full capacity. Both plants are crucial links in the Thi Vai - Nhon Trach LNG chain, providing an essential baseload power source for the southern region. This consistent power supply is critical for industrial and economic development in the area.
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The Nhon Trach 3 and 4 LNG-to-power plant complex, December 2025. Photo: PVN |
Nguyen Duy Giang, Deputy General Director of PV Power, stated that the two plants have completed acceptance testing and received licenses to participate in the electricity market from 1/1/2026. With a committed offtake rate (Qc) of 65% over 10 years and an operating time of 6,000 hours per year, the mobilized output in 2026 is projected to reach 6 billion kWh. "The commitment to minimum offtake for gas-fired power projects is a significant challenge because LNG prices depend on the international market", Nguyen Duy Giang shared.
Once fully operational, the complex is expected to generate approximately 25,000 billion VND in revenue and contribute around 1,000 billion VND to Dong Nai province's budget annually. These contributions will support local economic development and public services.
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Nhon Trach 3 and 4 LNG-to-power plant, December 2025. Photo: PVN |
The Nhon Trach 3 and 4 plants utilize new-generation gas turbine technology, achieving a combined cycle efficiency exceeding 64%. This advanced technology meets emission standards, allowing for flexible fuel switching from LNG to a 50% hydrogen blend, with a future goal of 100% hydrogen use. This capability positions the plants as a forward-looking solution for cleaner energy production.
Amidst Vietnam's development in strategic breakthrough technology sectors such as building national big data centers, green-digital transformation, and semiconductor technology, Prime Minister Pham Minh Chinh called for the rational and diversified development of clean energy sources. He reiterated that rapidly and sustainably developing nations possess modern, green energy infrastructure, emphasizing that "the electricity sector must lead the way".
According to the revised Power Development Plan VIII, Vietnam needs new investments of nearly 37,500 MW in gas-fired power, with 60% being LNG-to-power. However, most projects currently face difficulties in negotiating offtake rates to ensure investor cash flow and long-term fuel volume and price calculations. These hurdles impede the progress of critical energy initiatives.
To achieve these goals, the Prime Minister directed ministries and agencies to review and remove procedural bottlenecks, especially in finalizing policies for plant operation and the LNG-to-power supply chain. For businesses, he urged early planning and negotiations with partners for spot LNG imports to mitigate price risks, reduce input costs, and enhance project efficiency.
Anh Minh
