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Lng

Long An Province licenses $3-bln LNG power plant

March 22, 2021 by e.vnexpress.net

Long An Southeast Asia Industrial Park in the southern province of Long An. Photo by Investment Promotion Portal of Long An Province.

Long An Southeast Asia Industrial Park in the southern province of Long An. Photo by Investment Promotion Portal of Long An Province.

It will be built at the Long An Southeast Asia Industrial Park at a cost of $3 billion, with the 90-hectare facility having two combined-cycle power plants, Long An 1 and 2, with a capacity of 1,500 MW each.

Long An 1 will go on stream in December 2025, and Long An 2, a year later.

Several other LNG power plants have received approval or having feasibility studies done now amid the growing power demand in Vietnam.

Singapore’s Delta Offshore Energy will build a plant in the Mekong Delta province of Bac Lieu in 2024.

The northern port city of Hai Phong has approved construction of a $5.09 billion LNG plant by the U.S.’s Exxon Mobil.

Filed Under: english, business, industries Vietnam, LNG plant, Long An, power, energy, Long An Province licenses $3-bln LNG power plant - VnExpress International, solar power plant, solar power plants, boiler drum in thermal power plant, bio power plant, floating nuclear power plants, jim bridger power plant, Diablo Canyon Power Plant, iti electrician jobs in power plant, Chernobyl Nuclear Power Plant in Ukraine, Long Phu Power Plant, LNG Power Plants, LNG Power

VinaCapital GS Energy recieves investment certificate for $3 billion LNG plant

March 22, 2021 by www.vir.com.vn

Consisting of Long An I and II, the VinaCapital GS Energy complex will be located on 90 hectares in the Southeast Asia Services Area, a part of Long An International Port of Long An province, and is expected to be started very soon.

vinacapital gs energy recieves investment certificate for 3 billion lng plant
VinaCapital GS Energy Pte. Ltd received the investment certificate for the $3 billion LNG-to-power complex

With a capacity of 3,000MW, the complex is expected to be put into operation in December 2025, consisting of two turbines with equal capacity.

The Long An LNG-to-power complex was granted an investment certificate on the occasion of Prime Minister Nguyen Xuan Phuc visited Long An on the same day, touring a range of other large-scale projects in this province.

PM Phuc highly appreciated the active preparation and handing over the investment certificate, as well as the close coordination among local authorities and ministries in the process to keep implementation on schedule.

vinacapital gs energy recieves investment certificate for 3 billion lng plant
Prime Minister Nguyen Xuan Phuc visited the LNG-to-power complex on March 21

Long An International Port is one of the biggest seaports in Vietnam with a total area of 147ha that includes nine berths that can serve 30,000-70,000 DWT ships.

Dong Tam Group is finishing the legal procedures to expand the scale of the Berths no. 8 and 9 to the designed capacity of 100,000 DWT.

In addition, the investor is also planning to build a special berth serving vessels containing liquid cargo of oil and liquefied gas. All constructions are being promptly constructed on schedule, with expectations of completing them in 2023.

In 2020, Long An International Port has signed a strategic cooperation agreement with ports in the Mekong Delta region, facilitating the development of a multimodal freight transport network. This will be the basis for Long An International Port to become a cargo transshipment centre of the Mekong Delta and the Southeast region to other regions domestically and internationally, contributing to reducing commodity costs and improving the competitiveness of regional enterprises.

In the first two months of 2021, the volume of goods imported and exported through Long An International Port reached nearly 200,000 tonnes. Besides, Long An International Port signed a cooperation agreement with wind power projects, officially becoming a strategic wind power centre for the southern area of the country.

By Bich Ngoc

Filed Under: Uncategorized VinaCapital, Long An, LNG, energy, Highlight

VinaCapital, GS Energy to invest $3 bln in LNG power plants in Vietnam

March 23, 2021 by tuoitrenews.vn

HANOI — VinaCapital, one of the largest investment and asset management firms in Vietnam, said on Monday it would jointly invest up to $3 billion in a LNG-to-power complex in the country with its South Korean strategic partner GS Energy.

The first phase of the 3,000-megawatt complex in the southern province of Long An should be operational from the end of 2025, VinaCapital said in an emailed statement.

The company did not specify when it would start building the complex, noting pending regulatory approvals were required.

LNG is growing more popular as a power generation fuel in Vietnam as coal falls out of favour because of its emissions and climate impact, with the country ramping up plans for LNG import terminals and power plants.

Prime Minister Nguyen Xuan Phuc welcomed GS Energy’s investment in the province as he visited the site of the planned complex in Long An on Sunday, the government said.

Vietnam plans to raise the proportion of gas-fired electricity in its power mix to 21% by 2030 and to 24% by 2045 from 13% currently, according to a draft of the government’s master power development plan expected to be officially released later this year.

Filed Under: Uncategorized Vietnam Life - VinaCapital, GS Energy to invest $3 bln in LNG power plants in Vietnam, TTNTAG, power plant in Vietnam, energy power plant, waste energy power plant, power plants in Vietnam, power plant vietnam, LNG Power Plants

LNG driving FDI picture so far in 2021

March 29, 2021 by www.vir.com.vn

1537 p10 lng driving fdi picture so far in 2021

As per a newly-issued investment certificate, VinaCapital GS Energy Pte., Ltd., a joint venture between South Korea’s GS Energy and VinaCapital, is to build a $3-billion liquefied natural gas (LNG)-to-power complex with a total capacity of 3,000MW in the Mekong Delta province of Long An.

The $3 billion LNG venture accounted for almost 30 per cent of the value of FDI attraction in the first three months of 2021.

This follows another mega-investment project from last year, when in January Delta Offshore Energy Pte., Ltd. registered $4 billion into an LNG-to-power complex in Bac Lieu province last year.

The list of registered LNG projects has been growing longer in recent years, including Japan’s Tokyo Gas, Sojitz, Kyushu, JERA, and J-Power, the United States, with familiar names such as ExxonMobil and AES Corporation, and South Korea with Kogas and GS Energy.

The demand for natural gas presents significant LNG opportunities in Vietnam not only due to the growing demand for energy. In anticipation of the declining supply of natural gas from domestic sources, Vietnam is expected to become an LNG importer as early as 2021. This will require significant upfront investments to build infrastructure across the LNG-to-power chain and Vietnam will be looking to strategic investors and sponsors for foreign capital and expertise according to the international law firm White and Case.

“As Vietnam transitions into an LNG importer, policies on LNG import prices (for instance to allow the ability to pass on increases in gas prices to consumers), technical standards for LNG infrastructure, and the liberalisation of the electricity and gas markets, among others, will be important considerations in the creation of a transparent and competitive market,” said Saul Daniel from White and Case.

He added that foreign investors looking to invest in large-scale infrastructure projects globally are looking for a stable legal and regulatory framework and a risk allocation model that adequately allocates the risk between the private sector and government, and which will ultimately be acceptable to third-party lenders to the foreign investors. Ongoing regulatory reform will play an important part in supporting the growth of the LNG sector at a pace to meet Vietnam’s energy ambitions.

While the pipeline is full to the bursting, how these projects could meet their promise in time remains a question as LNG-to-power infrastructure projects are very complex to execute. These are multi-stage development projects with numerous moving parts and multiple risks – involving upstream, downstream, counterparty, and construction interests.

For instance, Sembcorp Group expressed interest in building a thermal power project, but then in 2017 suddenly changed direction to utilise gas from the Blue Whale field. The nuances of the switch have kept the project from taking shape ever since. The project is still preparing investment procedures and negotiating a build-operate-transfer contract with the Ministry of Industry and Trade.

The National Steering Committee for Power Development has issued a proposal to approve the mechanisms on electricity pricing and electricity market participation of LNG power plants ahead of schedule, as well as soon complete policies and mechanisms to promote the progress of Blue Whale gas resources and other power projects.

The latest draft National Power Development Plan 8 so far proposed a four-fold increase of the current gas-fired power capacity to 28GW by 2030, or 21 per cent of the system capacity. The majority of the new capacity is expected to be fuelled by imported LNG.

Market players will also be paying close attention to how senior decision-makers address actions that will determine the affordability of LNG and shape the economic impact of Vietnam’s pivot to gas. Regulators are aware of the cost implications of LNG-fired power plants, according to a report by the Institute for Energy Economics and Financial Analysis.

Asian LNG spot prices have soared in recent months as a reminder that LNG prices will almost certainly trend higher and experience continued volatility as the market seeks a new post-pandemic equilibrium, the report concluded.

By Phuong Thu

Filed Under: Uncategorized LNG, FDI, Vietnam, Coverage, alarm 2021 abb drive, ford self driving car 2021, how far can you drive on empty

Adding LNG import terminal for Ca Na LNG Power Complex

April 6, 2021 by www.vir.com.vn

adding lng import terminal for ca na lng power complex
The Ca Na LNG power complex will turn Ninh Thuan province into the energy hub of the country

Accordingly, the terminal can endure loads of up to 97,000 tonnes and will directly support the first phase (1,500MW) of the LNG power complex.

The national LNG import and transit port plan is part of the national energy and seaport system master plan for 2021-2030 with a vision to 2050.

By the end of 2020, Ninh Thuan People’s Committee issued Decision No.2162/QD-UBND approving the project of the first phase of the Ca Na LNG power complex, with a capacity of 1,500MW implemented in Phuoc Diem commune (Thuan Nam district), with a total project investment value of more than VND49 trillion ($2.13 billion).

The project includes the LNG power plant using combined-cycle gas turbines with a capacity of 1,500MW, as well as the material supply and handling system (including LNG import terminal, LNG storage, gas recycling warehouse, and gas pipeline system), the power transmission system to ensure the transmission of the entire 6,000MW generated by the LNG power complex, and the related infrastructure and technical works.

The Ca Na LNG complex will commence implementation in the third quarter of 2021, and put into operation in the third quarter of 2024.

By Truc Anh

Filed Under: Uncategorized Ca Na, LNG, energy, investment, infrastructure, Investing

Arduous path to LNG success

April 6, 2021 by www.vir.com.vn

arduous path to lng success
GE’s latest 9HA.02 turbine is accelerating the shift to LNG

After a wave of investment in solar and wind power over the past two years, Vietnam is now witnessing strong interest in the field of electricity generated with the use of liquefied natural gas (LNG).

A report by the Institute for Energy Economics and Financial Analysis (IEEFA) published in January stated that Vietnam has quickly become one of the most promising LNG import markets in Asia, and many domestic and international investors have expressed their desire to pursue projects in the country. They are encouraged by changes in government management that no longer sees coal-fired thermal power as the centre of the power system, as well as the rapid growth of renewable energy in the nation’s power structure.

As such, investors have actively portrayed LNG as a cleaner source to replace coal and argue that gas-fired power units will be one of the main power sources required to feed public demand and supplement unstable renewable sources.

The IEEFA report also stated, “Vietnam’s electricity industry has never seen a wave of investors expressing so much interest as they do now, that – with the accompanying diplomatic pressure – remains unprecedented in the country’s history.”

Interest in LNG power may also be related to Resolution No.55/NQ-BCT on the orientation of Vietnam’s National Power Development Plan (PDP8), which emphasises the rapid development of LNG thermal power plants. However, at the same time, experts advise that priority must be given to developing LNG import and distribution infrastructures.

According to the nation’s target until 2030, Vietnam must import 8 billion cubic metres of LNG per year, while the current rate is zero. The focus on LNG power generation is also attributed to its advantages, such as ensuring a stable power supply and minimising the impacts on the environment.

“The third draft of the PDP8 for the period 2021-2030, with a vision to 2045, is proposing to quadruple the current capacity of gas-fired thermal power by 2030 to 28GW, equivalent to 21 per cent of the total system capacity. Most of these plants are then expected to use imported LNG,” the IEEFA report states.

According to experts, LNG power generation is flexible and can be adjusted as needed. Besides this, the carbon emissions of LNG account for roughly half of coal power, which helps to reduce the energy sector’s impact on the environment. At the same time, LNG power is capable of reaching higher power output when needed, without interruptions and dependencies on nature such as wind or solar power.

Given the fact that global CO 2 emissions are still increasing, the power sector takes on a mandate and a multidimensional approach to take important steps to rapidly reduce greenhouse gas emissions and solving the problem of climate change on a large scale.

“Despite the massive deployment of renewables such as wind and solar power, the energy sector has not improved significantly to meet the goals set out in the Paris Agreement on carbon neutralisation. The International Energy Agency (IEA) said that to achieve improvements in power efficiency, instead of spending time building new renewable power sources, it is possible to convert from coal to gas to reduce emissions faster,” said Vic Abate, General Electric’s (GE) senior vice president and chief technology officer and former CEO of both GE’s Gas Power and Renewables businesses.

According to the current draft of the PDP8, there are about 24 LNG projects proposed with a total potential of 23GW by 2025 and 84GW by 2035, with a demand for imported LNG of about 60 million tonnes per year.

Challenging negotiations

According to experts, about half of the proposed gas power projects are complexes for LNG import ports, storage tanks, recycling systems, and gas pipelines and power plants, with the remainder being pure power plants running on LNG.

However, no LNG power project has started its construction yet because contracts related to their operation have not been completed, most notably because of the missing power purchase agreements (PPA).

Even though the Bac Lieu LNG project was licensed in early 2020, the project owners are still negotiating a PPA without seeing the finish line anywhere close.

Talking about the progress of LNG project implementation, experts from the energy sector, as well as several project brokers and financial advisors, also said that the biggest challenge will be to negotiate the PPA.

“PPA negotiations must comply with the regulations of the Ministry of Industry and Trade, whereby the approved project documents must be available before the negotiation. Based on investment costs, cash flow in and out, profits, and discount rates, the purchase price of electricity that investors want to sell will be set. Except for those cases that do not exceed 7 US cent per kWh, for which Electricity of Vietnam will sign a PPA immediately, other prices will take computation and consideration,” said energy consultant Nguyen Binh.

Other investors also said that since the government reaffirmed that there are no guarantees, the decision to invest in an independent power plant requires investors to make great efforts.

“Spending a few billion US dollars on projects without a foreign currency conversion guarantee will make it difficult for investors to keep cash flows in hand when unexpected situations occur,” said Binh.

arduous path to lng success
Track 4A power plant in Malaysia running on GE’s latest generation of HA turbines

Scale is king

According to Petrovietnam, the 24 planned LNG power projects recorded in the draft PDP8 will lead to a situation where the coastline of Vietnam will be covered by the configuration of “one power plant plus one LNG import and gas refinery warehouse”.

Meanwhile, other countries around the world are developing power plant clusters using large receiving ports to optimise the cost of gas infrastructure between the port and the power plants.

This means that these power centres choose a place with favourable conditions for convenient infrastructure with low cost, located near a suitable load centre and built according to environmental criteria. For instance, port warehouses must have a capacity of at least 6 million tonnes of LNG per year to be considered cost-efficient.

In parallel with the recommendations on the size of LNG terminals, experts also said that using new and innovative technologies will bring higher efficiency to an LNG power plant.

In the technology race, GE’s two world records for operating power plants with the highest efficiency have sparked the interest of LNG project operators in Vietnam as they offer significant cost savings compared to other technologies in the industry.

“The newest generation of turbines offers the lowest cost of capital and fuel conversion with a long engine life, thus reducing the total cost of ownership. As such, a generation H turbine combined with cycle plant for 1,000MW occupies an area of ​​about 0.05 square kilometres, far less than the 20sq.km needed for onshore wind or solar power plants of the same scale,” said Christophe DuFault, general manager (Project Execution) of GE Gas Power Asia, adding that GE’s HA turbines are currently the largest and most efficient gas turbines in the world and have received more than 120 orders from more than 48 customers in 20 countries and regions.

With its strong development potential, the IEA expects the Asia-Pacific to be a region with many “breakthroughs in the development of LNG power plants in the next decade”.

GE has more than 80 years of experience in the supply and construction of combined cycle power plants, and it has been 29 years since the first H turbine generation. GE’s H-generation turbines currently supply 21.5GW at 24 locations worldwide and are monitored daily at its centre in Kuala Lumpur.

In addition to delivering outstanding energy efficiency and cost savings, GE’s newest H-generation turbines also cut emissions – a key factor in securing the future of the energy industry in Asia-Pacific.

However, experts also say that although LNG can be a superior solution to other fossil fuels in terms of efficiency and emissions, both these advantages depend heavily on related technology.

“Our new power plant operating in Malaysia demonstrates that low-carbon or non-carbon gas power technologies, such as our HA technology, can help accelerate CO 2 reductions in power production. At GE, the combination of gas and renewable electricity will be part of the solution for the present and the future,” said DuFault.

LNG is now expected to lead the way in Vietnam’s energy structure, meeting a large portion of its capacity by 2030.

By Thanh Huong

Filed Under: Uncategorized LNG, energy, GE

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