General Electric has signed a memorandum of understanding with Vietnam's Power Generation Joint Stock Corporation 3 (EVN GENCO 3) for the Long Son liquified natural gas-fired power project in the southern province of Ba Ria-Vung Tau.
The MoU was signed on November 21 during a three-day visit to Vietnam by US National Security Advisor Robert O’Brien, who met with Vietnamese Prime Minister Nguyen Xuan Phuc in Hanoi.
Under the terms of the agreement with EVN Genco 3, General Electric will supply gas turbines and provide services over the lifetime of the project. The deal is estimated to be worth US$1 billion, and GE is also looking to take an equity stake in the project, according to local media reports.
The Long Son LNG power plant will be located in an industrial area near Ho Chi Minh City, and will have a generation capacity of 3.6GW. Final approval is still needed from the Ba Ria-Vung Tau provincial government. Project participants plan to have the first phase of the plant up and running by 2025.
Pacific Corporation, Vietnam’s Power Engineering Consulting Joint Stock Company 2, and Mitsubishi Corp will also participate in the project.
GE is heavily involved in the fast-growing Vietnamese power sector. On October 23 it said that it has signed a contract with EVN GENCO 3 to continue to supply parts and services for the Phu My 2.1 and 4 Power Plants. The two facilities are part of the 3.9GW Phu My Power Generation Centre in the south of the country and provide approximately 10% of the country’s energy needs.
The five-year service agreement includes the provision of new and reconditioned parts, and on-site services for four GE GT13E2 gas turbines and STF-D200 combined cycle steam turbine units, helping to enhance the power plants’ safe and reliable operations.
Phu My is the country's largest power generation facility. GE gas turbines have been in use at the plant since 1997, and since 2016 have been upgraded to newer, more efficient models.
According to GE, it provides up to 27% of the Vietnam’s electricity needs, where there is an installed power generation capacity of about 55GW. GE currently has a fleet of 25 gas turbines and seven steam turbines in the country.