PetroVietnam Power, a unit of state-owned PetroVietnam, has signed a deal with Citibank and ING for a $300 million short-term loan to fund the construction of its Nhon Trach 3 and 4 LNG power plants.
PV Power said in a statement that the deal was signed during a ceremony held on April 4.
In addition to the short-term loan, PV Power said it is also working with Citibank and ING to arrange a long-term loan worth up to $600 million to finance the Nhon Trach 3 and 4 power plants.
PW Power said this is the first LNG power project in Vietnam with strategic importance in ensuring national energy security.
The firm previously said it expects the Nhon Trach 3 power plant to launch operations in November 2024, while the Nhon Trach 4 power plant is expected to start operations in May 2025.
PetroVietnam Power said in November 2021 it broke ground on the two LNG power plants in the southern province of Dong Nai worth about $1.4 billion.
The Nhon Trach 3 and 4 plants will have a total capacity of 1,500 megawatt (MW).
South Korea’s Samsung C&T secured a contract from PetroVietnam Power to build the plants as part of a consortium with Vietnamese contractor Lilama.
Samsung C&T also built the Thi Vai LNG terminal, owned by PetroVietnam Gas, in the coastal area southeast of Ho Chi Minh City.
PetroVietnam Gas officially launched its Thi Vai LNG terminal, first such facility in Vietnam, on October 29, 2023 after nearly 4 years of construction and commissioning.
In July 2023, LNG giant Shell delivered the commissioning LNG cargo to the terminal from Indonesia’s Bontang LNG plant.
PetroVietnam Gas also recently started supplying LNG via trucks from its Thi Vai LNG import terminal to industrial customers.
The Thi Vai LNG import facility consists of one 180,000-cbm LNG tank, a jetty, and regas area.
The terminal has a capacity of 1 mtpa in its first phase, but PetroVietnam Gas plans to boost the capacity to 3 mtpa in the next stage.
