Vietnam Electricity (EVN), the Power Project Management Board 2, and a consortium of contractors comprising POWERCHINA and the Vietnam Machinery Erection Corporation (LILAMA) have officially signed the Engineering, Procurement, and Construction (EPC) contract for Component Project 1 (the Power Plant) of the Quang Trach II Liquefied Natural Gas (LNG) Thermal Power Project.
The contract is valued at more than VND25.2 trillion (over $976 million).
The Quang Trach II LNG Thermal Power Project is located in the Hon La Economic Zone in Phu Trach, Quang Tri Province. EVN serves as the primary investor, with Power Project Management Board 2 overseeing the direct management and implementation of the project.
As a critical national energy project under the Power Development Plan 8 (PDP8), the plant will have a total capacity of 1,612.8 MW (comprised of two 806.4 MW units).
By utilizing advanced combined-cycle gas turbine (CCGT) technology, the project is expected to play a pivotal role in shifting Vietnam’s power structure toward a "green transition," enhancing national energy security, and helping the country meet its international commitments to reduce greenhouse gas emissions.
The total investment for the entire project is over VND52.49 trillion (over $2 billion), structured with 20% equity and 80% commercial loans. The development is divided into two main components: Component project 1 - power plant with total investment capital of VND40.12 trillion (nearly $1.55 billion); and Component project 2 – LNG storage and port with estimated total investment capital of VND11.8 trillion (over $456 million).eThe project is being co-financed by a consortium of four major domestic commercial banks: Vietcombank, VietinBank, BIDV, and Agribank.
Under the terms of the EPC contract, the POWERCHINA-LILAMA Consortium will execute a turnkey package including design, procurement, construction, installation, testing, and commissioning. The consortium has committed to ensuring the project is completed on schedule as mandated by PDP8, while meeting rigorous standards for quality, safety, and environmental protection.
The investor and the contractors have selected turbine technology from GE Vernova (USA), one of the world's leading suppliers. All parties noted that significant efforts have been made to ensure the project meets its goals for both progress and efficiency.
Once operational, the Quang Trach II LNG Thermal Power Plant is projected to supply approximately 10 billion kWh of electricity annually to the national grid. This contribution will be vital for safeguarding energy security, increasing the proportion of clean energy, and achieving the energy transition objectives outlined in the national strategy.
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