Signing the cooperation agreement on research, investment and development of the project in Chan May - Lang Co Economic Zone
USD 6-billion project of gas power
In the framework of Vietnam Energy Summit 2020 in Hanoi (in late July 2020), the signing ceremony of the cooperation agreement between the Provincial People's Committee and Chan May LNG Joint Stock Company on research, investment and development of the project in Chan May - Lang Co Economic Zone took place.
This is the LNG Power Plant project invested and developed by Chan May LNG Joint Stock Company and expected to be located in Chan May - Lang Co Economic Zone, with a total design capacity of 4,000 MW. The form of private investment (IPP) has the equity capital of 60% from US, 40% from Vietnam. It is expected that when put into operation, the plant will provide an annual average electricity output of 24-25 billion kWh.
Mr. Tran Si Chuong, Chairman of the Management Board of Chan May LNG Joint Stock Company, said that this project captured the special attention from the US media because it received a commitment to full capital and loans from major investors from the US, together with the financial investment division of the World Bank and the US government agencies responsible for assisting US citizens and businesses to invest abroad.
The investor hopes to receive the investment license in the 4th quarter of 2020. The investor is also ready to join the world's leading partners from the US and Japan in the fields of engineering, technology, environmental management, construction, administration ... in quickly implementing the project right after the project gets the Government’s approval.
Vice Chairman of the Provincial People's Committee Phan Thien Dinh said that the province is proposing that the Government should supplement the planning of the Chan May Gas Power Project, located in Chan May - Lang Co Economic Zone, suitable for the development of large-scale gas power project. The gas power project developed in this area will make a breakthrough in developing Chan May - Lang Co Economic Zone in particular and give an impetus to the growth of both Thua Thien Hue and Da Nang City in general. The Provincial People's Committee is cooperating closely with the investors to soon put the project into operation in 2021 and complete the first phase in 2024
“The project with an estimated total investment of 6 billion USD is expected to make a great breakthrough for the domestic and provincial energy sector, promote economic development and generate jobs in the post-COVID-19 period,” Deputy Chairman of the Provincial People's Committee emphasized.
According to the research and evaluation results produced by the consulting unit, the project is expected to be well positioned in terms of infrastructure. The experts said that this is one of the projects with economic efficiency, high feasibility when allowed to be implemented.
Priority given to clean energy source
Chan May LNG Power Plant with a total capacity of 4,000 MW (including 5 electricity generating units of 800MW) is invested in 2 phases. Phase 1: building 3 units with a total capacity of 2,400MW, expected to put into commercial operation in the period of 2024-2026. Phase 2: building 2 units with a total capacity of 1,600MW, expected to put into commercial operation in the period of 2026-2028. The average annual electricity output for a unit is 4,800 million kWh.
According to the report delivered by the Provincial People's Committee regarding the status quo of electricity sources, the whole province has 13 additional hydropower plants with a total capacity of 451.7 MW, 10 of which generated electricity, with the annual electricity output contributing to the national grid of over 1 billion kWh.
Regarding solar power, 1 project with a designed capacity of 35MW was put into commercial operation in November 2018. This is the first project to be brought into operation in the country.
In the first year of operation, the plant exceeded the designed output by 151.66%, showing that the potential for solar power in the province is enormous. Currently, 1 project with a capacity of 50MWp is being implemented and basically completed; 4 projects with a total capacity of about 260 MWp are awaiting the supplementary Plan of Power Development.
In addition, on the basis of reviewing the unused, inefficiently-used land fund and the surface area of unused irrigation lakes, hydropower lakes and lagoons in the province with a total area of about 2,655ha, the province is capable of developing the solar power projects with a potential capacity of about 2,100MWp.
In order to implement the energy development plan, in addition to requesting the Government to add Chan May Gas Power Project to the National Electricity Development Plan according to the adjusted diagram, the province also requests the Central government to soon issue the bidding mechanism for solar power projects and the specific instructions for local implementation.
At the same time, the Central government should accelerate the assessment and supplementation of electricity planning for the projects of solar power and biomass power. Besides, the government should promulgate the regulations allowing the use of the planned but untapped land areas for mineral exploitation and grant the exploitation license for investing in solar power development and promoting land use efficiency.
The province's target is to provide sufficient and stable energy for rapid and sustainable socio-economic development, ensure the national defense and security, improve the people's lives, and contribute to protecting the ecological environment, firmly ensuring the national energy security.
Story and photo: THAI BINH