Nhon Trach 3&4 Gas-fired power plants (1.5GW)

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The project comprises the construction of two additional units, 3 and 4, to Nhon Trach combined-cycle power plant (CCPP) in Vietnam, namely Nhon Trach 3 and Nhon Trach 4, located in Ong Keo Industrial Park, Nhon Trach District, in Dong Nai province, Vietnam. The two new units will have a combined capacity of 1.5GW, 750MW each (up to 1624MW, according to some sources), and will be fuelled by liquefied natural gas (LNG). The owner is PetroVietnam Power (PV Power), a power producer in Vietnam. The total estimated investment in the project is $1.4bn. The capital required for the development of the two power plants will be sourced through 25% equity and 75% debt. A banking consortium comprising Citi (US) and ING (Netherlands) is arranging export credit capital and co-ordinate loans through two export credit agencies (ECA loans) - KSURE of the Republic of Korea and SERV of Switzerland. ING as SERV agent could jointly arrange SERV cover for about $291.5 m of the total long-term ECA covered financing. The total SERV (ING as agent) and KSURE (Citi as agent) loan amount is $521.5m for a period of 12 years. Another loan of $200m comes from Sumitomo Mitsui Banking Corporation (SMBC) (Japan) and SACE - the Italian Export Credit Agency. A consolidated loan of $230m comes as follows: Citi $105m; ING $25m; Commerzbank $30m; Bank of China $30m; OCBC Bank $40m. Citibank also provided $300m in short-term loans. A domestic loan comes from Vietcombank with the amount of $164m (VND4,000 billion), announced on 26 September 2023. The total debt sum is around $1185.5m. The equity sum is around $214.5m. According to some sources the debt/equity ratio is 75/25, but a more precise proportion is 84.7/15.3. The commercial debt equals the loans of Vietcombank and the short-term loans of Citibank - $464m in total. PV Power signed an extension of the Letter of Authorisation (LOA) with the consortium in February 2020. The Nhon Trach 3 and Nhon Trach 4 power plants will be equipped with GE’s 50Hz, 9HA.02 gas turbines fuelled by LNG. Each power block will also include an STF-D650 steam turbine, W88 generator and Once Through Heat Recovery Steam Generator (OT HRSG) in a 1-1-1 configuration, as well as being equipped with GE’s integrated Mark VIe Distributed Control System (DCS). The OT HRSG technology will enable advanced water-steam cycles for higher combined-cycle efficiency. The Mark VIe control systems are expected to enhance asset visibility, reliability and availability, as well as cut the costs associated with plant operation and maintenance. The LNG required for the project is proposed to be sourced from the Thi Vai LNG terminal, which is currently under construction by PetroVietnam Gas (PV Gas) as part of the Nhon Trach Power Gas Project chain. A consortium of South Korean engineering and construction company Samsung C&T and Vietnamese engineering and construction company Lilama received a contract to provide engineering, procurement and construction (EPC) services for Nhon Trach 3 and Nhon Trach 4 in March 2022. General Electric (GE) was awarded the contract to supply the gas turbines and associated equipment for the project in May 2022. PV Gas received a contract to supply LNG for the project in 2019. The two new units are expected to be operational by 2025. https://pvpower.vn/en/post/pv-power-announces--521-5-million-facility-agreements-for-nhon-trach-3-4-power-plant-project-6166.htm; https://vir.com.vn/companies-collaborate-to-support-pv-powers-nhon-trach-3-and-4-114165.html ; https://www.globaltradealert.org/intervention/122714/trade-finance/italy-sace-grants-loan-guarantee-to-support-exports-of-italian-companies-to-vietnam ; https://www.power-technology.com/projects/nhon-trach-3-and-4-combined-cycle-power-project-vietnam/?cf-view ; https://pvpower.vn/en/post/power-purchase-agreement-for-nhon-trach-3-4-power-plant-6170.htm