Vietnam Electricity and Oil and Gas Group seal PPAs for Nhon Trach plants

They also signed an LNG agreement.

Vietnam Electricity (EVN), Vietnam Oil and Gas Group, along with their member units have signed several deals, which includes power purchase agreements (PPA) for Nhon Trach 3 and 4 power plants.

In a statement, EVN said the signing of PPA for Nhon Trach 3 and 4 Power Plants took place between PetroVietnam Power Corporation and Power Trading Company. 

“The signing of PPAs not only marks a critical milestone and is an important condition for Nhon Trach 3 and 4 Power Plants to come into commercial operation but also creates a premise and orientation for the negotiation of PPAs for other LNG [liquefied natural gas] power projects in the Power Development Plan VIII,” EVN said.

A signing ceremony was also held for the memorandum of understanding on LNG supply from Vung Ang 1 LNG terminal to Quang Trach II LNG Power Plant between Vietnam Gas Corporation and EVN. 

This aims to optimise the resources and expertise of both parties to ensure the timely and efficient supply of LNG from the Vung Ang LNG terminal to the Quang Trach II LNG Power Plant project, aligning with the schedule and implementation plan outlined in Power Development Plan VIII.

The Quang Trach II LNG Power Plant project is a key component of Power Development Plan VIII. This involves transitioning from coal to LNG as fuel, resulting in an increase in the country's total power generation capacity from 1,200 megawatts (MW) to 1,500 MW utilising combined cycle gas turbine technology.