PetroVietnam Power (PV Power) said on Monday it has signed an agreement for a $300 million short-term loan from Citibank and ING to fund its projects to develop Vietnam’s first two LNG power plants.
PetroVietnam said in a statement that it is also in talks for a long-term loan of $600 million from the two lenders for the Nhon Trach 3 and Nhon Trach 4 power plants being built in southern Vietnam.
Vietnam, a regional manufacturing hub, is seeking to ramp up its power generation capacity to support its economic growth. The country has experienced brief power shortages in recent years that affected industrial production.
The two LNG facilities are part of a planned 13 LNG power plants with a combined capacity of 22.4 gigawatts that the country wants to build by 2030.
The Nhon Trach 3 plant is scheduled to start power generation from November this year, and Nhon Trach 4 from May next year, according to PV Power.