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Long Phu Power Centre is a power station in Tan Hung, Long Duc, Long Phu, Soc Trang, Vietnam with multiple units of varying statuses, none of which are currently operating.
Location
Table 1: Project-level location details
| Plant name | Location | Coordinates (WGS 84) |
|---|---|---|
| Long Phu Power Centre | Tan Hung, Long Duc, Long Phu, Soc Trang, Vietnam | 9.70894, 106.08183 (exact) |
The map below shows the exact location of the power station.
Unit-level coordinates (WGS 84):
- Unit 1-1, Unit 1-2, Unit 2-1, Unit 2-2, Unit 3-1, Unit 3-2, Unit 3-3: 9.70894, 106.08183
Project Details
Table 2: Unit-level details
| Unit name | Status | Fuel(s) | Capacity (MW) | Technology | Start year |
|---|---|---|---|---|---|
| Unit 1-1 | construction | coal: bituminous | 600 | supercritical | 2026 (planned) |
| Unit 1-2 | construction | coal: bituminous | 600 | supercritical | 2026 (planned) |
| Unit 2-1 | cancelled | coal: bituminous | 660 | supercritical | 2029 |
| Unit 2-2 | cancelled | coal: bituminous | 660 | supercritical | 2030 |
| Unit 3-1 | cancelled | coal: bituminous | 600 | supercritical | – |
| Unit 3-2 | cancelled | coal: bituminous | 600 | supercritical | – |
| Unit 3-3 | cancelled | coal: bituminous | 600 | supercritical | – |
Table 3: Unit-level ownership and operator details
| Unit name | Owner | Parent |
|---|---|---|
| Unit 1-1 | PetroVietnam Power Corporation JSC [100%] | PetroVietnam Power Corporation JSC [100.0%] |
| Unit 1-2 | PetroVietnam Power Corporation JSC [100%] | PetroVietnam Power Corporation JSC [100.0%] |
| Unit 2-1 | Tata Vietnam [100%] | Tata Power Co Ltd [100.0%] |
| Unit 2-2 | Tata Vietnam [100%] | Tata Power Co Ltd [100.0%] |
| Unit 3-1 | to be determined [100%] | to be determined [100.0%] |
| Unit 3-2 | to be determined [100%] | to be determined [100.0%] |
| Unit 3-3 | to be determined [100%] | to be determined [100.0%] |
Project-level coal details
- Coal source(s): Australia and Indonesia
Background
The overall purpose of the Long Phú Power Centre is to provide electricity to the southern part of Vietnam during the dry season, when hydropower production is low, and to reduce the need to distribute electricity from the northern part of the country to the south.[1]
Long Phú-1
The first of the three power stations at the Long Phú Power Centre is Long Phú-1, a proposed "high efficiency" 1,200-MW coal-fired power station by Hanoi-based PetroVietnam Technical Services Corporation (PTSC), a subsidiary of energy provider PetroVietnam Group. The plant’s two units are planned to use supercritical boiler technology and scrubbers. Global engineering firm Black & Veatch won a contract to design and manage construction of the facility.[2]
In Dec. 2013, after three years of delays, a consortium of three companies — Russia's Power Machines, Slovakia's BTG Holding, and Vietnam's PetroVietnam Technical Services Corporation (a subsidiary of PetroVietnam Group) — signed an engineering & construction agreement with PetroVietnam for the construction of Long Phú-1. At the time, the cost was projected to be US$1.39 billion. The first unit was slated to be completed in December 2017, and the second in May 2018.[3][4] In January 2015, PetroVietnam and the construction consortium signed another agreement, with completion now scheduled for 2019.[5] Site preparation work began in June 2015.[6]
As of June 2016, work was 24% complete. Construction was running behind schedule, and the completion date will potentially be pushed back even further.[7][8]
In October 2017, construction continued to lag behind schedule, with Deputy Minister of Industry and Trade Hoàng Quốc Vượng demanding that all parties make greater efforts to speed up progress without sacrificing quality. In particular, Vietnam Oil and Gas Corporation should approve the full amount of the project's investment.[9]
In June 2018, it was reported the plant had been hit with further delays after the January 2018 decision by the US Treasury to add Power Machines, a major contractor on the plant, to its list of embargoed Russian companies. As a result of the embargo, General Electric suspended its contract to supply turbines and generators for the plant and international banks have frozen US$780 million in loans. Faced with further delays to the project, the Vietnamese Government has directed PetroVietnam to develop a plan for the project and update the construction cost, which was estimated in 2013 at US$1.39 billion.[10] Construction was 76.11% complete as of June 2018.[11] In March 2019, construction was 77.56% complete but construction had stopped due to the American embargo imposed on Russian equipment supplier Power Machines in January 2018.[12]
An analysis of projected greenhouse gas emissions from Long Phú-1 by a former director of the U.S. EPA's Air Enforcement Division found that a consulting firm for the project, Environmental Resources Management, had doctored the coal plant's greenhouse gas emissions estimates to make Long Phu-1 appear to be a more efficient "ultra-supercritical" plant, which would be allowed under ECA coal financing restrictions.[13] A different analysis by Friends of the Earth found that the project's sponsors had also failed to analyze alternatives, identify cumulative and associated risks and impacts, evaluate labor and working conditions, prevent pollution, protect community health, provide safety and security, and ensure biodiversity conservation.[13]
In June 2019, the completion date was delayed to 2023 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7).[14] In August 2020 it was reported that PetroVietnam is working to preserve and prevent damage to construction materials at the site, which are beginning to rust.[15] In June 2021, it was reported that construction on Long Phu-1 had not progressed since January 2018 and remained at 78% completion.[16]
On July 4, 2022, the Ministry of Industry and Trade appeared to provide an update on the draft PDP. The document’s list of major power projects planned for 2021-2030 (PDF pages 18-20) included the project with a target completion around 2027.[17]
At the end of September 2022, reports cited that the project was continuing to face obstacles with the contractor.[18]
In December 2022, PetroVietnam was seeking a new EPC contractor for the project, because the outgoing contractor, Russia's Power Machines, was under U.S. Department of Treasury sanctions.[19]
According to reporting from May 2023, PetroVietnam was in discussions with contractors and the Long Phú-1 Project Management Board to restart the Long Phú-1 project. PetroVietnam's General Director had reportedly asked the Project Management Board to "update the total project estimate, review the legal status of contracts, and re-evaluate the capitalisation value of the project."[20]
In November 2023, though delayed by 5 years, the power station project was slated to resume construction. Units were targeted to be operational in 2026.[21]
In February 2024, litigation through the Singapore International Arbitration Center (SIAC) was ongoing between PetroVietnam and Russian-owned Power Machines. Power Machines had reportedly won a lawsuit in November 2023, and a $500 million settlement was being discussed. Following the SIAC ruling, PetroVietnam was permitted to propose alternative implementation plans for the Long Phú-1 project, which was stalled at 78% completion.[22]
Long Phú-2
In November 2013, Vietnam's Ministry of Industry and Trade approved a proposal by India's Tata Power, a subsidiary of the Tata Group, to build the second power station, the 1,320-MW Long Phú-2, at a cost of US$1.8 billion. The plant would be Tata's first outside of India.[23][24]
According to Tata Power, Long Phu 2 would use coal imported from Indonesia or Australia which will be carried to Vietnam on large ships.[25]
In October 2014, Tata agreed to construct the plant on an accelerated schedule, with completion now scheduled for 2019, rather than 2022 as previously planned.[26]
As of April 2016, Tata said that it was still negotiating with the Ministry of Industry & Trade on investment and operating procedures. The company revised its completion date to the end of 2020.[27]
In June 2019 the completion date for Unit 1 was delayed to 2029 and the completion date for Unit 2 was delayed to 2030 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7).[14]
In November 2020 it was reported that Tata Power had requested and been approved for a refund of its investment in the project by the Prime Minister, and that Long Phú-2 and other coal plants whose construction had not yet begun would be cancelled under future development plans under Vietnam's upcoming Power Development Plan VIII.[28][29]
An October 2021 report by GreenID lists the Long Phú-2 power station as one of 18 coal-fired power stations in Vietnam that was struggling to secure financing. Given that China, Japan, and South Korea have all committed to stop financing new coal-fired power stations, it will be extremely difficult for any of these projects to secure funding in the future.[30]
On July 4, 2022, the Ministry of Industry and Trade appeared to provide an update on the draft PDP. The document’s list of major power projects planned for 2021-2030 (PDF pages 18-20) did not include the project.[31] On July 15, 2022, the Deputy Prime Minister appeared to request further review of the major power projects that had been included in the revised PDP VII but not in the draft PDP VIII.[32] The project is presumed shelved for now.
In December 2022, Long Phú-2 was mentioned in a Vietnam Investment Review article.[19]
In May 2023, Vietnam officially approved the updated power development plan (PDP8). Under this plan, the country will domestically generate 20% of its electricity needs with coal by 2030 and fully phase out coal-fired power stations by 2050. The plan involved increasing energy generation using coal to a peak of 30 GW and replacing all other outstanding coal projects with LNG or renewables. PDP8 listed Long Phu II among the projects that would not move forward.[33]
Long Phú-3
As of September 2011, PetroVietnam was searching for investors for Long Phú-3. This final phase would have a capacity of 2,000 MW and would cost an estimated US$3 billion.[34]
The government has negotiated with various companies about building the plant, including the idea that Tata also build this plant, as well as a proposed consortium of Daelim Industrial and Korea Electric Power Corporation.[35][27]
In November 2016 it was reported the Vietnam National Oil and Gas Group (PVN) had been in talks with foreign companies over a plan to import 15 million tons of coal a year to fuel three major thermal power stations, including Long Phu 1 (1,200MW) and Long Phu 3 (1,800MW).[36]
In June 2018 the Vietnam Ministry of Industry and Trade asked to transfer the investor of the Long Phu III plant from PetroVietnam to Chinese investor Southern Electric Grid Co., Ltd (CSG), which is also funding Vinh Tan power station-1 in Vietnam. CSG proposed to implement Long Phu III project in the form of a Build-Own-Transfer basis. A joint venture by China's Zhejiang International Energy Corporation and Hong Kong's China Power Investment Consultant is also reportedly interested in the plant, as an IPP project - which does not require a government guarantee like a BOT project does. According to the article, PetroVietnam is the investor of 4 coal power plants and 7 gas power plants, which is too much for the company.[37]
In June 2019 the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7) did not list a completion date for Long Phú-3 and noted that PVN had proposed that it be transferred to a new owner, effectively shelving the project until after 2030.[14]
In September 2019 PetroVietnam withdrew from funding Long Phú-3 and the Chairman of the Long Phu People's Committee announced that it was in talks with the Banpu Group of Thailand to fund the plant instead.[38] On November 23, 2019, the Prime Minister issued Document No. 1576 / TTg-CN assigning as Banpu Power Public Limited (Thailand) as the project's primary investor.[39]
In November 2020 it was reported that Long Phú-3 would likely be delayed until after 2030 under Vietnam's upcoming Power Development Plan VIII.[40] The September 2021 draft of the Power Development Plan 8 (PDP8) gives a commissioning date of 2031-2035 for the plant.[41]
An October 2021 report by GreenID lists the Long Phú-3 power station as one of 18 coal-fired power stations in Vietnam that was struggling to secure financing. Given that China, Japan, and South Korea have all committed to stop financing new coal-fired power stations, it will be extremely difficult for any of these projects to secure funding in the future.[42]
On July 4, 2022, the Ministry of Industry and Trade appeared to provide an update on the draft PDP. The document’s list of major power projects planned for 2021-2030 (PDF pages 18-20) did not include the project.[43] On July 15, 2022, the Deputy Prime Minister appeared to request further review of the major power projects that had been included in the revised PDP VII but not in the draft PDP VIII.[44] The project is presumed shelved for now.
In December 2022, Long Phú-3 was mentioned in a Vietnam Investment Review article.[19]
In May 2023, PDP8 listed Long Phu III among the projects that would not move forward.[33]
Plant size modified
According to the Revised Power Development Plan VII, released in 2016, the status of the project was as follows:[45]
- Phase I - 2 x 600 MW - Construction - completed in 2019
- Phase II - 2 x 660 MW - "Planned with investor identified" (i.e. pre-permit development) - completed in 2021 and 2022
- Phase III - 3 x 600 MW - "Planned with investor identified" (i.e. pre-permit development) - completed in 2021 and 2022
Coal Port
In May 2015, construction began on a US$4 million port facility that will handle coal for the Long Phú coal plants.[46]
Financing
- Long Phú-1: In 2018, it was proposed that the sponsors will finance the project on a 70:30 debt to equity ratio – seeking US$1.4 billion in debt. Export Credit Agencies (ECAs) involved in the project are Hermes (Germany), Egap (Czech Republic), and Exiar (Russia), while the development banks are International Investment Bank (US$100 million loan) and Vnesheconombank (Russia, US$213.5 million loan).[47] HSBC, Cathay United Bank, JP MorganChase and Mitsubishi UFJ are the lead arrangers behind a US$650 million loan for the plant.[48] K-Sure of Korea is providing insurance of US$122 million.[49][48][50]
- In April 2020, SACE, Italy's ECA, confirmed to NGOs that it is not considering any future export credit guarantee to the Long Phu project. SACE had approved a guarantee in late 2017 but subsequently pulled out of financing for the project. In April 2020, HSBC announced that it would no longer fund new coal projects after previously making exemptions for projects in Vietnam, Bangladesh, and Indonesia. The announcement means that HSBC will cease its involvement with Long Phú-1.[51] US$313 million in loans were to be provided by International Investment Bank and Vnesheconombank. PetroVietnam was to contribute US$477 million in equity to the project.[52] In May 2023, PetroVietnam's General Director had reportedly asked the Project Management Board to update the total project estimate, including to re-evaluate the capitalisation value of the project."[20] As of March 2024, the proposed loan financing arrangements appeared to not be going ahead.
- Long Phú-2: The Song Da Corporation was originally chosen to be the main investor in the Long Phu 2 project. In August 2012, Song Da Corp. requested permission to withdraw from the Long Phu 2 project citing economic difficulties.[53] It was subsequently reported that the Government of Vietnam awarded the US$1.8 billion project to Tata Power, a subsidiary of Tata Group.[54]
- Long Phú-3: In 2019, Banpu Group of Thailand was proposed as the project's primary investor an investor.[38][39]
Articles and Resources
References
- ↑ "Vì sao miền Nam Việt Nam cần thêm nhà máy nhiệt điện?" Sputnik Viet Nam, 8 October 2017
- ↑ Jenny Marusiak , "Vietnam investing heavily in high-tech coal plants" Eco-Business, June 9, 2011.
- ↑ PVN Signs Contract for New Power Station, Viêt Nam News, Dec. 28, 2013.
- ↑ EPC Contract Signed for Long Phu 1 Thermal Power Plant Construction, PetroVietnam press release, Dec. 27, 2013.
- ↑ Power Machines to build 1.2 GW TPP Long Phu 1 in Vietnam, AK&M News Service, 29 Jan. 2015.
- ↑ Thi công đóng cọc thử Nhà máy Nhiệt điện Long Phú 1, Petrovietnam press release, 1 July 2015.
- ↑ Nhiệt điện Long Phú 1 và Sông Hậu 1 chậm tiến độ: Căng thẳng trong cấp điện cho miền Nam, Dautu Online, 6 Aug. 2016.
- ↑ [http://petrovietnam.petrotimes.vn/lanh-dao-pvn-lam-viec-tai-ban-qlda-long-phu-1-va-song-hau-1-491961.html Lãnh đạo PVN làm việc tại Ban QLDA Long Phú 1 và Sông Hậu 1], PetroTimes, 16 Feb. 2017.
- ↑ NHÂN HÀ, "Nhiệt điện Long Phú 1 thi công qúa chậm," Nhàđầutư, 8 October 2017
- ↑ "Nhiệt điện tỷ USD chậm tiến độ vì nhà thầu bị Mỹ cấm vận," Vietnam Net, 11/06/2018
- ↑ Dự án NMNĐ Long Phú 1 hoàn thành 76,11% khối lượng công việc, Petro Times, Jun. 20, 2018
- ↑ Dự án nhiệt điện tỷ đô Long Phú 1 "bất động" đến bao giờ?, enternews.vn, Dec. 2, 2019
- ↑ 13.0 13.1 The City of Angels Funds Some Hellish Fossil Fuel Projects, EcoWatch, Oct. 31, 2018
- ↑ 14.0 14.1 14.2 Implementation of Power Projects in the Revised Power Development Plan 7, Ministry of Industry and Trade, Republic of Vietnam, Jun. 4, 2019
- ↑ Giải pháp nào cho Dự án NMNĐ Long Phú 1?, PetroTimes, Aug. 15, 2020
- ↑ Tìm nguồn điện thay thế khi chuỗi dự án khí - điện Cá Voi Xanh và Lô B-Ô Môn chậm tiến độ, VnEconomy, June 14, 2021
- ↑ “Draft National Power Development Plan VIII,” MOIT, July 4, 2022
- ↑ “‘No investor wants to stop coal power project despite difficulties’,” Vietnam Posts, September 28, 2022
- ↑ 19.0 19.1 19.2 “PetroVietnam seeks new EPC contractor for 1,200MW Long Phu 1 thermal power plant,” Vietnam Investment Review, December 23, 2022
- ↑ 20.0 20.1 "Petrovietnam seeks measures to restart Long Phu 1 Thermal power project," Vietnam Plus, May 8, 2023
- ↑ "Sớm khởi động lại dự án Nhiệt điện Long Phú 1 để hoàn thiện vào năm 2026," Năng lượng Việt Nam, November 7, 2023
- ↑ "Cái kết cho dự án Nhà máy Nhiệt điện Long Phú 1, Sóc Trăng," Việt Nam Thời Báo, February 14, 2024
- ↑ Tata Power to Build $1.8B Coal Plants in Vietnam, Law360, Nov. 22, 2013.
- ↑ "Tata Power to develop 1,320 MW thermal power plant in Vietnam," Press Trust of India, November 20, 2013.
- ↑ "Coal-run thermal power plant slated for Soc Trang province," Vietnam Net, November 18, 2014
- ↑ TATA Power to complete Vietnamese power plant in Long Phu in 2019, India Infoline, 28 Oct. 2014.
- ↑ 27.0 27.1 Dự Án nhiệt điện Long Phú 3 được đầu tư 2 tỷ USD, CAU.com.vn, 8 Apr. 2016.
- ↑ Nhiều dự án nguồn điện trong quy hoạch ‘chưa rõ tiến độ’ vào vận hành, Nang Luong Vietnam, Nov. 25, 2020
- ↑ Quy hoạch vùng ĐBSCL: Thay thế tất cả nhà máy điện than chưa xây dựng bằng nhà máy LNG và năng lượng tái tạo, Cafe F, Nov. 26, 2020
- ↑ Trung Chanh, 18 dự án nhiệt điện than trong quy hoạch khó tiếp cận vốn, The Saigon Times, Oct. 3, 2021
- ↑ “Draft National Power Development Plan VIII,” MOIT, July 4, 2022
- ↑ “Thiệt hại ra sao nếu không làm 2.430MW điện mặt trời ngoài quy hoạch Điện 8,” Laodong, July 18, 2022
- ↑ 33.0 33.1 Approving the national electricity development plan for the period of 2021-2030, with a vision to 2050, Prime Minister of Vietnam, May 16, 2023
- ↑ Long Phu 3 Power Plant Project, PetroVietnam document, Sept. 2011.
- ↑ Indian firm to build Mekong power plant, Viet Nam News, 30 Mar. 2015.
- ↑ "PetroVietnam to import 15 million tons of coal annually to fire power plants," Vietnam Net, 07/11/2016
- ↑ "Tính chuyển nhiệt điện tỷ USD từ PVN sang doanh nghiệp Trung Quốc," VietnamNet, 30/06/2018
- ↑ 38.0 38.1 PVN rút lui, doanh nghiệp Thái Lan nhảy vào làm dự án nhiệt điện Long Phú 3, Vietnam Finance, Sep. 10, 2019
- ↑ 39.0 39.1 PVN có 8 dự án điện khó hoàn thành tiến độ, BNews, Feb. 28, 2020
- ↑ Nhiều dự án nguồn điện trong quy hoạch ‘chưa rõ tiến độ’ vào vận hành, Nang Luong Vietnam, Nov. 25, 2020
- ↑ 2021 Draft PDP 8, vepg.vn, accessed 12-3-2021
- ↑ Trung Chanh, 18 dự án nhiệt điện than trong quy hoạch khó tiếp cận vốn, The Saigon Times, Oct. 3, 2021
- ↑ “Draft National Power Development Plan VIII,” MOIT, July 4, 2022
- ↑ “Thiệt hại ra sao nếu không làm 2.430MW điện mặt trời ngoài quy hoạch Điện 8,” Laodong, July 18, 2022
- ↑ DANH MỤC CÁC DỰ ÁN NGUỒN ĐIỆN VÀO VẬN HÀNH GIAI ĐOẠN 2016 - 2030, Ban hành kèm theo Quyết định số 428/QĐ-TTg ngày 18 tháng 3 năm 2016 của Thủ tướng Chính phủ (LIST OF POWER PROJECT IN OPERATION PERIOD 2016 - 2030, Issued together with Decision No. 428 / QD - TTg of March 18, 2016 by the Prime Minister)
- ↑ Construction of port serving power plant begins in Soc Trang, Vietnam+, 4 May 2015.
- ↑ "Long Phu 1 (1200 MW)," Market Forces, accessed June 2018
- ↑ 48.0 48.1 "Long Phu I coal power plan Vietnam," BankTrack, accessed June 2018
- ↑ Joojin Kim and Soyoung Lee, “Financing Dirty Energy: How Korean Public Financial Institutions Support Coal Power,” SFOC, Jan 2018
- ↑ "VEB and IIB to finance power plant construction in Vietnam". September 8, 2017.
{{cite web}}: CS1 maint: url-status (link) - ↑ Tima Ha, No more loopholes: HSBC closes door on new coal projects, Eco-Business, Apr. 27, 2020
- ↑ "Preview of Long Phu 1 Thermal Power Plant (1.2GW) | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-09-23.
- ↑ "Indian firm to invest in Vietnam's $1.8-bln thermal power plant project," Thanh Nien News, June 08, 2013.
- ↑ "Long Phu 2 Coal-Fired Power Plant (1320MW)," IJGlobal, last updated 26 July 2017
Additional data
To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.
