The $2 billion thermal power plant project in Nam Dinh wants to convert to gas-fired power

Speaking with VietNamNet reporter, Mr. Tran Anh Dung, Standing Vice Chairman of Nam Dinh Provincial People's Committee, said that the province wants to convert the Nam Dinh 1 BOT coal power project to an LNG (liquefied natural gas) power project to ensure fuel for electricity production, which is more environmentally friendly.

Electricity is a trend replacing coal power. Illustration photo

"After consideration, we want to convert it into an LNG power project. However, we still need to recalculate specifically first," said Mr. Dung.

Nam Dinh I Thermal Power Plant Project is one of five BOT coal-fired thermal power projects that are behind schedule and facing difficulties in changing shareholders and arranging capital.

The Nam Dinh I Thermal Power Plant Project was granted an investment registration certificate by the Ministry of Planning and Investment on June 15, 2017 in Nam Dinh for the joint venture of Taekwang Power Group (Korea) and Acwa Power (Saudi Arabia), through the legal entity Nam Dinh First Power Company Limited (headquartered in Singapore).

The project has a total investment capital of about 2.2 billion USD, in the form of a build-operate-transfer (BOT) contract; implemented in the two communes of Hai Chau and Hai Ninh (Hai Hau) on an area of 242.71 hectares.

The project is built and operated according to the design of a coal-fired thermal power plant, with a capacity of about 1,109.4 MW, including two units, each with a capacity of about 554.7 MW.

It is known that before 2010, the Nam Dinh 1 BOT Thermal Power Plant project had its initial steps implemented in Hai Hau district.

Accordingly, Nam Dinh province has reserved a large area of land for resettlement and land acquisition for the project.

On July 2, 2017, the project was officially granted an investment registration certificate by the Ministry of Planning and Investment. The expected start date announced at the ceremony was mid-2018.

However, due to difficulties in capital arrangement, shareholder change and completion of related processes and procedures, the project has been delayed for many years.

Previously, on November 6, the Government Office issued a Notice on the Conclusion of the Government Standing Committee on solutions to ensure adequate electricity supply for production, business and people's consumption in the last months of 2023 and 2024 and prepare for the next 5-year and 10-year plans; ensuring national energy security and Vietnam's reputation with foreign investors.

In particular, concluding on BOT coal power sources, the Government Standing Committee requested the Ministry of Industry and Trade, the State Capital Management Committee at Enterprises, and Vietnam Electricity Group (EVN) to re-count BOT projects that are behind schedule compared to the National Power Development Plan for the 2021-2030 period, with a vision to 2050, to have appropriate alternative sources, and to completely handle this issue before November 15, 2023; if it is past the prescribed deadline, it will be removed from the plan or the contract will be terminated.

According to the report of the Ministry of Industry and Trade, the list of coal-fired thermal power projects that are behind schedule and facing difficulties in changing shareholders and arranging capital includes 5 projects. The total capacity of these 5 projects is up to 7,220MW, including: Quang Tri Thermal Power Plant (1,320MW), Cong Thanh Thermal Power Plant 600MW, Nam Dinh I Thermal Power Plant 1,200MW, Vinh Tan III Thermal Power Plant 1,980MW, Song Hau II Thermal Power Plant 2,120MW.

Thanh Hoa Provincial People's Committee is also proposing to consider and approve the conversion of coal fuel to LNG of Cong Thanh Thermal Power Plant in Nghi Son Economic Zone and update it in the Implementation Plan of Power Plan VIII.

Quang Tri Thermal Power Project, the investor is the Thai Electricity Generating Authority International (EGATi) has issued a document announcing the suspension of the project. Quang Tri Province proposed to replace it with LNG power according to the document dated August 9. Many other localities are also looking to convert unimplemented coal power projects to gas power.

Coal power project owner wants to switch to gas power: We are very impatient! Coal power is almost "out of the question" for new investment, the only way is to switch to LNG power. The owner of Cong Thanh Thermal Power project reflected that although they did not request any incentives, everything was ready, but they were very impatient waiting...

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