The transition from a coal-fired to an LNG-fired thermal power plant, according to Nam Dinh provincial authorities, will gradually reduce the number of coal-fired power plants and satisfy environmental protection regulations.
Deputy chair of Nam Dinh People’s Committee Tran Anh Dung on March 28 said the province has proposed a transition of the $2.2 billion coal-fired power to an LNG-fired power project.
The local authorities proposed that MOIT negotiate with investors on developing an LNG-fired power project instead of the Nam Dinh 1 BOT thermopower project using coal as input material. The move, if approved, will ensure friendly materials for power production and fit Vietnam’s net-zero emissions commitment at COP26.
Developing LNG-fired power projects will also follow the national power development plan for 2021-2030 and the Law on Environmental Protection.
Nam Dinh 1 BOT thermal power project received an investment registration certificate from the Ministry of Planning and Investment in June 2017. The project is developed by South Korean Taekwang Power and Saudi Arabic Acwa Power through the legal entity named Nam Dinh First Power Holdings Pte Ltd, headquartered in Singapore.
The $2.2 billion project is expected to be implemented under the BOT mode between investors and MOIT. It will be built and operated in accordance with the design of a coal-fired power plant, with capacity of 1,109.4 MW, comprising two electricity generation units, with capacity of 554.7 MW each.
The project is located in two communes of Hai Chau and Hai Ninh in Hai Hau district, covering an area of 242.71 hectares. The project was initially scheduled to kick off in mid-2018, but no move has been taken after the license was granted.
Under the eighth national power development plan (Plan 8) approved by the PM on May 15, 2023, Nam Dinh Thermal power Plant is listed among important prioritized projects. It is also one of the coal-fired thermal power projects going slowly in implementation because of changes in shareholder and problems in capital arrangement.
The project has been extended to June 2024, and if no progress is made by that time, it will be terminated in accordance with the laws.
In the document to MOIT, Nam Dinh provincial authorities reported that by December 2020, the agreement on the content of the BOT and GGU (Governmental Guarantee and Undertaking) had been reached. The Prime Minister released a document instructing the official signing of project contracts after the PPA (power purchasing agreement) is completed.
However, to date, the project contracts have not been signed because of problems related to PPA and investors’ restructuring.
In late 2023, Thailand-based Gulf Group had a working session with Nam Dinh on the project.