The Fierce Battle Among Global Investors for Vietnam's $2.5 Billion Mega Project in Thanh Hoa Unfolds

Thanh Hoa Provincial Party Committee says five investors have shown keen interest in the development of an LNG thermal power plant complex within the Nghi Son Economic Zone.

This project holds significant importance in the broader strategy to transform Nghi Son into a pivotal hub for national electricity generation.

The Nghi Son Gas Power Plant project, now incorporated into the VIII Plan, assumes a crucial role in bolstering energy security. Complementing existing infrastructure such as the Nghi Son 1 and Nghi Son 2 thermal power plants, the LNG Nghi Son thermal power project promises to elevate Nghi Son into the preeminent electricity hub in the North Central region.

The ambitious Nghi Son LNG Thermal Power Plant Project entails the construction of a single LNG power plant boasting a capacity of 1,500MW, along with an LNG import port.

Ancillary infrastructure includes a 1-kilometer breakwater and facilities supporting the import port, comprising an LNG storage and onshore regasification station with a tank capacity of approximately 230,000 m3.

Additionally, a regasification station with a capacity of about 1.2 million tons per year is planned, alongside technical infrastructure for LNG storage and regasification. The project also involves the establishment of a gas pipeline network connecting the regasification station to the LNG power plant, with an annual capacity of 1.2 million tons.

Spanning an estimated area of 68.2 hectares, the project commands a substantial investment of approximately $2.5 billion. Situated in the southern precincts of Nghi Son port, within Hai Ha commune, Nghi Son town, Thanh Hoa province, the project is slated for a 50-year operating term, with commercial operations expected to commence before 2030.

The Management Board of Nghi Son Economic Zone and Industrial Parks has received investment policy proposals from five prospective investors for the Nghi Son LNG Thermal Power Plant project.

Foremost among the contenders is a consortium comprising Japan's largest electric power group, JERA, and Vietnam's SOVICO Group. Notably, JERA has been actively pursuing the project since February 2020, engaging in extensive field surveys and consultations with provincial authorities.

Concurrently, SOVICO Group, a prominent private economic entity in Vietnam, has been involved in project advocacy efforts, proposing a specific site within the Nghi Son economic zone for construction.

JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, stands as a leading power generation entity in Japan, with a footprint across Asia, encompassing renewable energy initiatives in India and Thailand.

The company has operated gas thermal power plants in Vietnam since 2005, viewing the country as a pivotal market with significant potential for LNG and renewable energy projects. With ambitions to increase renewable energy capacity to 5,000MW by 2025, JERA is poised to spearhead the development of LNG-powered facilities in Vietnam.

Meanwhile, the rival investor group, comprising Korea Southern Power Corporation (KOSPO), Korea Gas Corporation (KOGAS), Daewoo Construction and Engineering Corporation (Daewoo E&C), and Anh Phat Construction Investment and Trading Corporation, poses a formidable challenge.

Anchored by Korean heavyweights, supplemented by the local expertise of Anh Phat Group, this consortium presents a compelling proposition in the race for project control.

Gulf Energy Group, representing Thailand's economic interests, emerges as another noteworthy contender, with recent engagements signaling a keen interest in investing in Thanh Hoa province, including the Nghi Son LNG thermal power plant project.

Additionally, the joint venture between SK E&S and PV Power, in collaboration with T&T Group, introduces further dynamics to the competition.

Emphasizing the project's significance, Provincial Party Secretary Do Trong Hung affirmed, "This is the province's third-largest project after the Nghi Son Refinery and Petrochemical Plant project and the Nghi Son Thermal Power Plant project."

Acknowledging the gravity of the endeavor, he underscored the imperative for adherence to regulatory frameworks, stressing the importance of fair, transparent bidding processes.