Vietnam's Power Sector Requires Policy Support for LNG Projects Ahead of 2030 Deadline
Vietnam's power sector requires substantial policy support to operationalize approximately 15 LNG power projects by 2030, as outlined in Power Development Plan VIII. The Nhơn Trạch LNG Power Plants 3 and 4 are set to be the first projects, with construction expected to finish by late 2025, though Vietnamese contractor Lilama faces challenges due to current bidding regulations and limited capital. Lilama has formed a consortium with a foreign partner to navigate these hurdles and emphasizes the need for training and advanced technology adaptation for future LNG initiatives.
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To meet the Power Development Plan VIII target of operationalizing approximately 15 LNG power projects by 2030, Vietnam's power sector needs special mechanisms and robust policy support. Nhơn Trạch LNG Power Plants 3 and 4 were identified as the inaugural projects under this plan.
Despite rapid EPC contractor selection, the process still took nearly one year, with construction expected to conclude by late 2025. Vietnamese contractor Lilama, facing challenges with current bidding regulations, formed a consortium with a foreign partner for these projects due to experience requirements.
Lilama's charter capital is currently capped at VNĐ900 billion (about US$34 million), limiting its ability to independently manage larger projects. The company has proposed capital increases since 2016 but has faced investor hesitance due to its asset structure. Lilama aims to participate in future LNG initiatives, emphasizing the importance of training and adapting to advanced technologies.
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