Vietnam’s Nhon Trach Thermal Power Plants Facing Financial Losses due to Schedule Delays

The Nhon Trach 3 and 4 thermal power plants are facing significant financial losses due to schedule delays, with an expected daily loss of 13 billion VND in interest and revenue from electricity generation. These details were discussed during a meeting on the progress of the Nhon Trach 3 and 4 Dong Nai Thermal Power Plant project on May 9. This project, the first of its kind in Vietnam to use liquefied natural gas (LNG), has a capacity of 1,624 MW and an investment capital of 1.4 billion USD. It is part of the national energy plan until 2030 approved by the Prime Minister in 2019.

Despite timelines set for both plants, only about 85% progress has been made overall. The People’s Committee of Dong Nai province and other relevant parties were urged to provide continued support to facilitate the project’s progress. According to Minister of Industry and Trade Nguyen Hong Dien, issues surrounding power purchase agreements, gas, and capacity release lines have been resolved but challenges related to premises and land procedures remain unresolved. He emphasized that addressing these issues is crucial for avoiding further delays and potential risks to the project.

The Nhon Trach 3 thermal power plant is expected to start commercial operation in November this year after generating test electricity in May as per the plan. Meanwhile, Nhon Trach 4 is projected to begin operating in May