Vietnam Electricity Corporation (EVN) has signed a power purchase agreement (PPA) with Hiep Phuoc Power Company Limited for the development of the Hiep Phuoc Liquefied Natural Gas (LNG) Power Plant – Phase I in Ho Chi Minh City.
The event, held on March 26, 2026, also included the groundbreaking ceremony for the project, considered key infrastructure within the national energy system.
A Key Step in LNG Development in Vietnam
This agreement represents the second PPA contract in the LNG-based power generation sector in the country, consolidating Vietnam’s progress in diversifying its energy matrix.
Likewise, this is the first project implemented under the new regulatory framework established by the 2025 government decrees, designed to promote investments in power plants using imported LNG.
This regulatory context aims to accelerate the development of cleaner energy sources and improve power system stability.
The LNG Plant Will Feature Advanced Technology
The Hiep Phuoc Plant – Phase I will have an installed capacity of 1,200 MW and an approximate investment of $892 million.
The project is being executed under the BOO (Build-Operate-Own) model, which means the investing company will be responsible for the construction, operation, and ownership of the facility.
In technological terms, the plant will incorporate high-efficiency gas turbines supplied by Siemens, which will optimize operational performance and reduce emissions compared to other thermal sources.
During the signing, representatives emphasized that this agreement reinforces Vietnam’s commitment to developing more flexible and sustainable energy sources.
Additionally, the plant will help ensure national energy security in a scenario of growing electricity demand.
It is estimated that, once in commercial operation, the facility will be able to supply more than 7 billion kWh annually to the power grid, strengthening supply for the country’s economic and social development.
Source and photo: EVN