The PetroVietnam Gas Joint Stock Corporation (PV Gas) on June 24 signed contracts on the building of a liquefied natural gas (LNG) warehouse and the provision of the product for two thermal power plants.

The ceremony to sign contracts of PV Gas on June 24

At the signing ceremony in Hanoi, PV Gas inked an engineering, procurement and construction contract for the Thi Vai LNG warehouse, located in the southern province of Ba Ria-Vung Tau, with Samsung C&T and the PetroVietnam Technical Services Corporation.

Meanwhile, PV Gas and the PetroVietnam Power Corporation (PV Power) signed a framework contract on the LNG supply and consumption for the Nhon Trach 3 and 4 power plants, based in the southern province of Dong Nai.

PV Gas Director General Duong Manh Son said a shortage of the product is forecast for the coming years, especially in the southeast – a major economic region. Therefore, to ensure gas supply for existing and new power projects, PetroVietnam and its members are implementing chains of gas-power projects using imported LNG.

Among them, the chain of Thi Vai LNG – Nhon Trach projects consists of the Thi Vai LNG warehouse and the Nhon Trach 3 and 4 gas-fired power plants.

The Thi Vai LNG warehouse is set to handle 1 million tonnes of LNG each year after the first phase, invested with some 286 million USD, is completed in 2022. Its capacity will be raised to deal with 3 million tonnes of LNG annually in the second phase, which is expected to finish in 2023.

Deputy Director General of PetroVietnam Le Manh Hung said the group is also directing its PV Power to implement the Nhon Trach 3 and 4 thermal power plants. Each of these plants will have a capacity of around 750 MW and be fuelled mainly with LNG provided by the Thi Vai LNG warehouse.

Covering about 34.5ha of land, the two factories are invested with over 1.4 billion USD. While Nhon Trach 3 will become operational in the fourth quarter of 2022, Nhon Trach 4 is hoped to be put into use in the fourth quarter of 2023.

The operations of the Thi Vai LNG warehouse and the two Nhon Trach power plants will help meet the growing gas and electricity demand in the southeastern region, Hung said.