First sod turned at $718mn LNG power plant in Ho Chi Minh City

The agreement marks the second LNG power purchase deal in Vietnam after the Nhon Trach 3 and 4 projects.

It is also the first LNG power purchase agreement implemented under Government Decree No. 56, which provides incentives for power plants utilizing imported LNG.

Officials said the project represents a major step in strengthening Vietnam’s legal framework for LNG development.

The Hiep Phuoc LNG power plant - Phase 1 is classified as a national key project.

It is executed under a build-own-operate model by Hiep Phuoc Power Company, with an installed capacity of 1,200 MW.

The facility will use gas turbines manufactured by Germany’s Siemens, designed to maximize efficiency and reduce emissions.

At the groundbreaking ceremony, Vietnam Electricity and project leaders asserted that the plant will provide cleaner and more flexible power generation, helping secure national energy supplies as demand continues to rise.

Once operational, the facility is expected to deliver more than seven billion kWh of electricity annually to the national grid, supporting socio-economic development.

As per Vietnam’s adjusted Power Development Plan VIII, the country aims to complete 15 large-scale LNG projects between 2025 and 2030, with a total capacity of 22,000-30,000 MW.

Six of these projects are required to meet approved timelines, but so far only Nhon Trach 3 and 4 plants in the southern province of Dong Nai have been completed.