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|PVGas and PV Power signing the framework agreement to develop Nhon Trach 3 and 4 thermal power plants|
On January 10, PetroVietnam Power Corporation (PV Power) and PetroVietnam Gas Joint Stock Corporation (PVGas) signed a framework agreement to supply LNG for the two thermal power plants.
Previously, in April 2018, the prime minister assigned PV Power to develop these thermal power plants, which cover an area of 34 hectares and have a total investment capital of VND33.3 trillion ($1.45 billion), with the production capacity of 750-800MW each. They will use LNG imported from the Thi Vai storage terminal.
PV Power operates Nhon Trach 1 and 2 thermal power plants. At present, PV Power can use the existing infrastructure of Nhon Trach 1 and 2 to operate Nhon Trach 3 and 4.
PVGas is the investor of the Thi Vai storage terminal, which plays an important role in offsetting the lack of LNG from 2020 onwards. With the designed annual capacity of one million tonnes of LNG once the terminal comes into operation in 2021-2022 and 3 million tonnes by 2025, the terminal is considered an important gas source for Nhon Trach 3 and 4.
Besides, as local demand for gas mounts, it is forecast that supply will be short of demand by more than two billion cubic metres of gas by the end of 2023, and this will increase to seven billion cu.m by 2030 and 9 billion cu.m by 2035. Thus, LNG will be a critical solution to offset this shortage.
In addition, during the past ten years, PV Gas provided 12.7 billion cubic metres of gas for Nhon Trach 1 and 2.
Thus, the co-operation between PVGas and PV Power will mark a new development milestone for the petrol and gas segment in Vietnam. Being large shareholders of PVGas and PV Power, PetroVietnam committed to support and created favourable conditions for these companies to develop Nhon Trach 3 and 4 on schedule.
After completing the necessary procedures, PVGas and PV Power will sign the official contract to connect Nhon Trach 3 and 4 to the national grid.