UK-based Storm Capital Partners, a privately owned hedge fund sponsor, is seeking support from local authority to invest in a floating LNG-fueled power plant in northern Hai Phong city, stated the city's website.
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According to the fund's representative, the power plant will ensure full compliance with environmental and safety standards, which will be operated at low cost with low selling price of electricity.
Hai Phong city's Mayor Nguyen Van Tung welcomed Storm Capital Partners's initiative, which is in line with the city's development strategy.
"Hai Phong is home to the biggest deepwater sea port in northern Vietnam and a major logistics hub," Tung added.
In the coming time, Hai Phong will construct an addition of two deepwater ports at Lach Huyen to facilitate trade activities, making the construction of a power plant in the city a good match, he added.
A floating LNG-fueled power plant is equipped with modern technologies with numerous advantages, for which the city's leaders expressed supports for the project.
Tung also informed that after getting the government's approval, Hai Phong will speed up the process of issuing investment license for the project.
Additionally, the city's leader also suggested Storm Capital Partners to consider the construction of logistics warehouses and port specialized for liquid cargoes in Hai Phong.
Electricity demand in Vietnam is forecast to continue increasing at an average rate of 9% per annum, driven by rising industrialization, urbanization and affluence, according to Fitch Ratings. Moreover, Vietnam has a solid national electrification ratio of 99.2%, with the ratio reaching almost 100% in urban areas, stated the rating firm.
