The bidding process for the liquefied natural gas (LNG) power plant development project in Thanh Hoa Province, Vietnam, has resumed after a six-month hiatus. As the project is considered a key initiative for Vietnam’s energy transition, attention is focused on whether South Korean companies can secure the contract.
According to the Nghi Son Economic Zone and Industrial Park Management Committee on the 28th, the committee recently reissued a bidding notice to select investors for the Nghi Son LNG power plant. Bid submissions will be accepted until June 10.
The newly announced bidding terms include slight adjustments to project costs, bid bonds, and required capital. The total project cost has been reduced from approximately $2.4 billion to about $2.2 billion, while the bid bond was nearly halved to around $11.23 million. The minimum equity requirement for investors was also eased slightly, from about $368 million to roughly $337 million. However, the criteria granting higher evaluation scores to investors with experience in LNG power plant and terminal construction remain unchanged.
The Nghi Son LNG power plant project is a large-scale development that will construct a 1,500-megawatt (MW) combined-cycle gas turbine LNG power plant on a 168-acre site (68.2 hectares), along with pipelines and transmission networks capable of supplying 1.2 million tons of regasified natural gas annually. The goal is to begin commercial operations by 2030 and continue for 50 years.
This project has been designated a national priority under Vietnam’s revised Power Development Plan VIII (PDP8). It is seen as a crucial undertaking to meet the growing electricity demand in northern and north-central Vietnam while ensuring energy supply stability.
Five pre-qualified investors are expected to participate in the bidding: a consortium of Korea Southern Power (KOSPO), Korea Gas Corporation (KOGAS), Daewoo E&C, and Vietnam’s An Phat; SK Innovation E&S; a consortium of Vietnam’s Sovico and Japan’s JERA; a consortium of Vietnam’s PV Power and T&T Group; and Thailand’s Gulf Energy.
The Nghi Son Economic Zone Management Committee stated, “All five investors have been assessed as capable and committed to executing the project. With most legal procedures and regulatory preparations completed, we plan to select the most qualified investor and move forward with the project.”
The project was first announced for bidding in July last year, but the process was canceled in October due to changes in government policy, halting the selection of investors. Initially scheduled to resume in January this year, the timeline was pushed back to April due to additional preparations for legal and regulatory adjustments.
