PM Nguyen Xuan Phuc said at a meeting on July 25 that he welcomed investors taking part in the US$4-billion LNG-fueled power project in the Mekong Delta province of Bac Lieu as the country is facing a potential power supply shortage.The PM required the investors to comply with environmental standards and implemented as schedule, the government said on its portal, without giving details of the investors.
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With a total capacity of 3,200 MW, the US$4-billion LNG-fueled power project in Bac Lieu province is scheduled to start operation in late 2021 with a capacity of 1,000 MW in the first phase, according to representatives of the project investors at the meeting.
The selling price of electricity is expected to be around US$0.07 per kWh. Moreover, LNG is cleaner than coal in terms of carbon emissions and toxic pollutants, informed the investor's report.
At the meeting, Bac Lieu province's officials considered this project as feasible, while the mentioned price is reasonable and lower than that of coal-fired, solar and wind powers.
In early May, the US-based Energy Capital Vietnam signed a memorandum of understanding with Bac Lieu authorities on the construction of a LNG-fueled power project worth US$4 billion, according to local media reports.
According to Energy Capital Vietnam, the project will be implemented in three phases. The first phase will be launched this year and will start operation in late 2021 with a capacity of 1,000MW. The second and third phases will be completed in 2024 and 2027, with capacities of 1,000 and 1,200 MW, respectively.
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.
Vietnam Electricity (EVN) is currently the largest electricity generator and the sole distributor of electricity in in Vietnam, which owns and operates about 61% of the country's total installed generation capacity, followed by PV Power with 12%.
