The Quang Trach III LNG-fired power plant project is estimated to cost about VND41.83 trillion ($1.59 billion), with 20% funded by EVN’s equity and the remaining 80% being loans arranged by state-controlled Vietcombank, one of the Big 4 Vietnamese lenders.

Part of the Quang Trach Power Center and Vietnam’s adjusted National Power Development Plan VIII (PDP 8), the project, covering 74 hectares in Phu Trach commune, will use combined-cycle gas turbine technology.

Speaking at the decision handover ceremony on Friday, standing Vice Chairman of the provincial People’s Committee Hoang Nam highlighted the project’s importance to local socio-economic development.

For EVN, it said the approval not only reinforces the orientation to turn Quang Tri into a new energy hub in central Vietnam but also marks a milestone in the rollout of key projects under the Quang Trach Power Center.

Once completed, the plant is expected to help shore up national energy security, particularly during 2031-2035 as electricity demand in northern Vietnam rises, while improving the safety and stability of the power system in line with the adjusted PDP 8.

It is also seen as a catalyst for economic growth in Quang Tri and the north-central region, contributing about VND1.2 trillion ($45.62 million) a year to the state budget, creating stable jobs for local workers, supporting auxiliary industries, and attracting more large-scale investors.

The Quang Trach Power Center currently comprises the coal-fired Quang Trach I plant and the LNG-fired Quang Trach II and III plants, with a combined capacity of about 4,500 MW.

On July 1, Quang Tri merged with Quang Binh province to form the new Quang Tri province, which spans about 12,700 square kilometers and borders Ha Tinh to the north, Hue to the south, the East Sea to the east, and Laos to the west.