Vietnam Electricity and Hiep Phuoc Power Company have signed a power purchase agreement for phase 1 of the Hiep Phuoc LNG power plant and held a groundbreaking ceremony in Hiep Phuoc Commune, Ho Chi Minh City.
Deputy Prime Minister Bui Thanh Son and a Government delegation inspect the progress of the Hiep Phuoc LNG Power Plant Project (Photo: VGP).
Following the Nhon Trach 3 and 4 projects, this is the second PPA signed in Vietnam’s LNG-to-power sector.
The milestone highlights progress in developing LNG-fired power projects, which are expected to play a central role in Vietnam’s evolving energy mix, gradually replacing coal-fired generation and providing flexible baseload capacity.
Under national plans, Vietnam aims to develop around 22 to 22.5GW of LNG power capacity, equivalent to roughly 22,400MW, by 2030.
The year 2026 is seen as a pivotal period for accelerating LNG power development. The Hiep Phuoc LNG power plant phase 1 is classified as a key national project, developed under a build-own-operate model with total investment of about USD 892 million, and an installed capacity of 1,200MW.
The project will use advanced gas turbine technology supplied by Siemens, helping to optimise operations and reduce emissions.
Once commercially operational, the plant is expected to supply more than 7 billion kWh of electricity annually to the national grid, contributing significantly to stable power supply and supporting Vietnam’s socio-economic development.
