The partnership between T&T Group and SK E&S from South Korea has formally engaged the Quang Tri Provincial People's Committee regarding the transformation of the Quang Tri 1 coal-fired thermal power project into an LNG gas power venture.
Envisaged to encompass a capacity of 1,500MW, the Quang Tri LNG gas power project entails an estimated investment of approximately $2.5 billion.
Vo Van Hung, Chairman of the Quang Tri Provincial People's Committee, said once the province concludes all procedures to propose the termination of the Quang Tri 1 thermal power plant project, the consortium should submit an overarching plan for project implementation to the provincial authorities for consideration.
The Quang Tri 1 thermal power project, initially proposed by Thai investors with a capacity of 1,320MW, is now awaiting "termination" after a decade of implementation.
Various challenges in securing bank loans, stemming from the enactment of the new Public-Private Partnership Investment Law, imported coal fuel sources, and Vietnam’s commitment to achieving net-zero emissions by 2050, have contributed to this outcome.
Following negotiations, by the end of September 2023, EGATi, the investor, had reached an agreement with the Electricity and Renewable Energy Authority, Ministry of Industry and Trade, to terminate the implementation of the thermal power project.
Turning back to the proposal by the T&T - SK E&S consortium, it represents a long-term and ambitious plan for renewable energy, encompassing both the LNG plant and storage infrastructure simultaneously.
Notably, in connection with the ongoing first phase of the Hai Lang LNG project with three foreign investors, T&T Group would substantially consolidate the LNG gas power center in Quang Tri if the plan to convert the Quang Tri coal-fired thermal power plant to LNG gas materializes.
T&T Group is currently teaming up wit three South Korean companies, including Hanwha Energy Corporation, Korea Gas Corporation and Korea Southern Power Company to build the first phase of a mammoth LNG power center project in Hai Lang with a capacity of 1,500MW and total investment of more than $2 billion.
