“PetroVietnam Power has activated its pioneering 1.6 GW Nhon Trach 3&4 facility, Vietnam’s inaugural LNG-powered plant equipped with cutting-edge GE Vernova turbines achieving over 63% efficiency. This development addresses surging electricity needs in southern regions while enabling future hydrogen integration, despite projected initial financial hurdles from elevated fuel expenses.”
Nhon Trach 3&4: Pioneering LNG Power in Vietnam
The Nhon Trach 3&4 combined-cycle power plant represents a pivotal shift in Vietnam’s energy landscape, introducing liquefied natural gas as a primary fuel source for large-scale electricity generation. With a total output of 1.6 gigawatts, the dual-block facility—each unit exceeding 800 megawatts—stands ready to supply over nine billion kilowatt-hours annually, targeting industrial hubs in Ho Chi Minh City and Dong Nai province.
Engineered with GE Vernova’s 9HA.02 gas turbines, STF-D650 steam turbines, and integrated control systems, the plant boasts a combined-cycle efficiency surpassing 63%, positioning it among global leaders in operational performance. This technology not only minimizes fuel consumption but also slashes carbon emissions by approximately 60% compared to equivalent coal-based alternatives, aligning with broader efforts to enhance grid reliability and accommodate renewable energy influx.
Financially, the $1.4 billion project underscores innovative funding models, securing over $1 billion in international loans without government backing—a first for Vietnam’s power sector. Construction, spanning from mid-2022, involved key contractors Samsung C&T and Lilama, with partial domestic manufacturing of components to bolster local supply chains.
Key Technical Specifications
Economic Implications for Stakeholders
| Aspect | Details |
|---|---|
| Capacity | 1.6 GW (two blocks, >800 MW each) |
| Fuel Source | Liquefied Natural Gas (LNG), with up to 50% hydrogen co-firing capability |
| Efficiency | >63% combined cycle |
| Emissions Reduction | ~60% less CO2 than coal equivalents |
| Annual Output | >9 billion kWh |
| Location | Ong Keo Industrial Park, Dong Nai province |
For PetroVietnam Power, the plant’s activation signals expanded revenue potential, estimated at around $950 million yearly once stabilized. However, brokerage forecasts indicate a combined net loss nearing $38 million in the inaugural full year, attributed to premium LNG procurement costs amid volatile global markets. Profitability is projected to emerge by 2028, potentially reaching $16 million, driven by the facility’s low per-megawatt capital outlay of $0.86 million and optimized fuel efficiency.
The initiative enhances Vietnam’s energy security through 2030, particularly as renewable capacity scales up. It supports a diversified generation mix, with LNG expected to comprise 9.5-12.3% of the national system, reducing reliance on coal and fostering sustainable growth in southern industrial zones.
GE Vernova, the U.S.-based supplier (NYSE: GEV, trading near $684 per share), gains from this deployment as its first HA-class turbine in Vietnam, potentially catalyzing further Asian contracts. The plant’s hydrogen-ready design offers long-term adaptability, enabling a transition to zero-carbon operations and appealing to investors focused on green infrastructure.
Strategic Role in Regional Energy Dynamics
As baseload providers, Nhon Trach 3&4 integrate into the Thi Vai-Nhon Trach LNG chain, ensuring stable power amid delays in other projects. This bolsters southern Vietnam’s competitiveness for foreign investment, where reliable electricity is critical for manufacturing and tech sectors. The facility’s compliance with stringent emission standards further positions it as a model for emerging markets balancing growth with environmental mandates.
Disclaimer: This news report offers insights and tips derived from various sources, without specifying them, and is intended for informational purposes only.
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