On December 14, The Vietnam Oil and Gas Group (Petrovietnam) and PV Power held the inauguration ceremony for the Nhon Trach 3 and Nhon Trach 4 LNG Power Plants at Ong Keo Industrial Park, Dai Phuoc Commune, Dong Nai Province. This marks Vietnam’s first project cluster to utilize imported Liquefied Natural Gas (LNG), signifying a pioneering step in the roadmap to reduce greenhouse gas emissions and realize the commitment to Net Zero emissions by 2050.

More than just a ceremonial inauguration, the moment Nhon Trach 3 and 4 officially went online is viewed as a “paradigm shift” for Vietnam's energy sector. For the first time, a large-scale, high-tech LNG power project meeting international standards has been completed and commissioned amidst a context where Vietnam faces dual pressures: ensuring energy security while strictly adhering to increasingly stringent climate commitments.

Six records defining the stature of the LNG megaproject

First and foremost, Nhon Trach 3 and 4 make their mark as Vietnam’s first project to use imported LNG for power generation, launching the “LNG to Power” chain in the energy transition strategies of Petrovietnam and PV Power. The adoption of LNG is not merely a technical solution but a strategic decision, serving as a “stepping stone” in the transition from traditional fossil fuels to cleaner energy sources.

Speaking to Industry and Trade Newspaper regarding this significance, Deputy General Director of PV Power Nguyen Duy Giang affirmed this as a special milestone for the electricity sector.

“This stands as the first LNG to Power facility in Vietnam, the first LNG entry point, marking a robust energy transition. The project is implemented in strict alignment with the Prime Minister's commitments at COP26 in 2021, clearly demonstrating Vietnam's choice of LNG as a crucial transitional step toward greener, cleaner energy and the Net Zero goal by 2050,” said the Deputy General Director.

Beyond its pioneering role in fuel, the Nhon Trach 3 and 4 project establishes a series of new records in scale and technology. With a total capacity of 1,624 MW, it is currently the largest gas power project in Vietnam; each unit achieves a capacity of 812 MW, the highest ever deployed. The utilization of GE’s 9HA.02 turbine generation, the world’s leading modern turbine line enables the plant to achieve an efficiency of 62 to 64%, far surpassing domestic gas power plants currently in operation.

On a deeper technical level, Nhon Trach 3 and 4 is Vietnam’s first single-shaft project, featuring a configuration where the gas turbine, steam turbine, and generator are connected on a single shaft. While this configuration offers optimal efficiency, it demands an exceptionally high level of technical expertise, management, and operational capability, particularly given that Vietnam has few precedents for such a model.

Alongside these technological and scale-related superlatives, the project also sets a record in an area long considered the biggest “bottleneck” for LNG projects: capital arrangement. Nhon Trach 3 and 4 is the first LNG power project in Vietnam to successfully arrange capital without a Government guarantee, securing a total loan value of nearly 1 billion USD from domestic and foreign credit institutions. Notably, it also stands as the project with the lowest investment cost in Vietnam to date.

Vietnamese mettle, intellect, and stature in an unprecedented project

If the “six records” reflect the stature of Nhon Trach 3 and 4 in terms of technology and scale, the project implementation process vividly demonstrates the mettle and intellect of Vietnamese enterprises as they venture into the uncharted waters of energy transition.

Deputy General Director Nguyen Duy Giang observed that the greatest challenge lay not in plant construction, but in paving the way ahead of established mechanisms.

“This is the first project in Vietnam without a guarantee from the Ministry of Finance, nor a guarantee from the Group. We had to prove to international credit institutions that the project was not only financially efficient but also fully compliant with stringent environmental standards,” He shared.

According to the Deputy General Director, the very process of working with major financial institutions from the US, Europe, and Asia placed Nhon Trach 3 & 4 on a “global benchmark” from the outset.

“Lenders assessed this as a critical project for Vietnam's energy transition, aligned with international commitments and financially viable. The successful capital arrangement in the absence of a Government guarantee demonstrates that the project governance capabilities and reputation of Vietnamese enterprises have been elevated to a new level,” emphasized representative.

Beyond solving the capital equation, Nhon Trach 3 & 4 served as a litmus test for the ability to master technology, organize construction, and manage risk amidst a volatile global supply chain. The fact that the participation rate of domestic contractors reached an all-time high for an LNG power project, while simultaneously keeping investment costs low, indicates that the internal strength of Vietnam's energy sector is being progressively affirmed.

Strategically, Nhon Trach 3 & 4 will not only supply over 9 billion kWh annually upon stable operation but also play the role of a flexible baseload power source, supporting system dispatching as the proportion of renewable energy increases. More importantly, the project has laid a practical foundation for the deployment of subsequent LNG power hubs under the Power Development Plan VIII (PDP8).

As viewed by the Deputy General Director, the success of the Nhon Trach 3 & 4 project lies not in the specific facility itself, but in the precedent it sets a precedent in mechanism, capital, technology, and trust. In the challenging landscape of energy transition, Nhon Trach 3 & 4 is, therefore, not merely a power plant, but a symbol of the spirit of daring to lead, daring to tackle difficulties, and daring to take responsibility by Vietnamese energy enterprises on the journey toward a green and sustainable future.

The Nhon Trach 3 & 4 LNG power project carries the mission of adding a new power source to the grid. It lays the groundwork for a new approach: generating cleaner electricity without compromising energy security; integrating deeply with the international market while retaining the mettle and autonomy of domestic enterprises.

Thus, the “six records” of Nhon Trach 3 and 4 do not stop at mere numbers. They represent a milestone indicating that Vietnam's energy sector is ready to enter a new development phase. A phase of higher standards, greater responsibility, and the aspiration to align with the global currents of energy transition.