An LNG shipment arrives at the Thị Vải Port Complex in southern Việt Nam. VNA/VNS Photo

HÀ NỘI The successful conversion of coal power projects to liquefied natural gas (LNG) is necessary to ensure energy security and help Việt Nam achieve its goal of net-zero emissions by 2050, said industry experts and insiders. 

According to the Ministry of Industry and Trade (MoIT), several coal-fired power projects are awaiting approval to transition into projects utilising LNG. Several provinces, including Thanh Hóa, Nghệ An and Quảng Trị, have voiced their opposition to additional coal-fired plants in favour of gas-fired plants.

As the country's hydropower reaches its maximum capacity and soaring demand for electricity in the coming decades, the development of gas-fired power electricity plants will play a vital role in ensuring electricity supply for the economy, as well as realising the gradual transition to cleaner energy in Việt Nam.

According to a recent report by the MoIT, there are currently five coal-fired power projects facing delays and difficulties in securing capital: the Vĩnh Tân III Thermal Power Plant (1,980 MW), the Sông Hậu II Thermal Power Plant (2,120 MW), the Quảng Trị Thermal Power Plant (1,320 MW), the Công Thanh Thermal Power Plant (600 MW), and the Nam Định I Thermal Power Plant (1,200 MW).

The investor of the Quảng Trị Thermal Power Plant project, Thailand International Power Company (EGATi), has officially announced the suspension of the project. Regarding the Công Thanh Thermal Power Plant project, located in Thanh Hóa Province, its investors - Công Thanh Group and the province are seeking approval to convert it into an LNG power project.

A British Petroleum (BP) representative said the group has been in discussion with Công Thành Group on the possibility of collaboration on an LNG power plant, along with two other international partners.

"The proposed project with Công Thanh aligns with BP's sustainable goals, including providing cleaner energy for the economy and supporting the communities where we operate," said the representative.

According to Đầu Tư (Investment) Newspaper's exclusive source, General Electric (GE) is currently engaging in technical discussions on the project and is ready to participate if cooperation opportunities arise.

Meanwhile, according to industry insiders, the conversion of the Công Thanh Thermal Power Plant into an LNG project, if approved, could become a model for other projects, which have been experiencing delays. 

Regarding the issue, Ms Lâm Nguyễn Phương Thảo, a lawyer at Russin&Vecchi Vietnam Company, believes that if approved, this could become a model for other delayed projects.

Thảo said the conversion would create hundreds of jobs in construction, engineering and infrastructure while reducing the country's dependence on imported coal. 

On the other hand, upfront costs, including LNG infrastructure and a stable supply source, must be readily available.

The pros, however, will likely outweigh the cons.

"This is a necessary step in Việt Nam's transition to a cleaner and more sustainable energy future," she said. 

In a recent exchange with the press, MoIT minister Nguyễn Hồng Diên said the development of LNG power projects is for ensuring electricity supply for economic and social development in the 2021-2030 period and beyond.

He said the ministry has been in close contact with investors and local authorities to discuss matters related to the impact on electricity prices, the capacity of project investors, and the technical conditions for project conversion.

John Rockhold, Head of the Electricity and Energy Working Group of the Vietnam Business Forum, said the conversion of coal-fired projects into gas-fired ones is a crucial step in the development of power sources in Việt Nam.

The reason is that LNG has up to 50 per cent lower carbon emissions compared to coal, and credit institutions are tightening funding for coal projects to meet international commitments on emission reduction. He emphasises the importance of infrastructure, deep-water ports, electricity prices, and, especially, government guidance in ensuring successful conversions. 

Dr Ngô Đức Lâm, former deputy director of the Energy Institute under the MoIT, said that accelerating the conversion of coal projects, especially those with existing infrastructure, will help address demand for the country's power-hungry northern regions. VNS