Vietnam’s Ministry of Industry and Trade met with Tay Ninh provincial officials on July 27 to resolve land, financing and power purchase agreement obstacles delaying the 3,000-megawatt Long An I and II LNG power plants. The $3.13 billion project, approved in 2021, has yet to break ground despite five years of preparation, and local authorities have set an end-of-August target for construction to begin.
Key Facts At A Glance
- Combined capacity: 3,000 MW across two combined-cycle gas turbine plants
- Total investment: approximately $3.13 billion
- Developer: Long An Energy Group Co., Ltd., with South Korea’s GS Energy as co-investor
- Investment approval: March 2021; investment policy adjustment: June 2024
- Long An I targeted commercial operation: June 2028
- Long An II targeted commercial operation: June 2031
- Main obstacle: unresolved land lease terms with the developer of Southeast Asia Industrial Park Phase 2
- Secondary obstacles: LNG import arrangements, gas infrastructure leases, and financing terms that do not meet international lender requirements
- Deadline set by Tay Ninh authorities for meeting construction conditions: August 30, 2026
Obstacles Persist Despite Years Of Preparation
A Ministry of Industry and Trade delegation traveled to Tay Ninh province on July 27 to review the status of power generation and transmission projects under Vietnam’s revised Power Development Plan VIII, with the Long An I and II plants as the central agenda item. According to the Long An Department of Industry and Trade, the investor has secured investment approval, met deposit obligations, and completed land, construction, environmental and fire-safety procedures. Feasibility studies, basic designs and environmental impact assessments have also been approved, and plans to connect the plants to the grid via 220kV and 500kV lines have been folded into the revised power plan.
Construction has not begun, however, because the developer has not finalized land lease terms, including unit prices and payment methods, with the company developing Southeast Asia Industrial Park Phase 2. Tay Ninh Deputy Director of Industry and Trade Tran Thanh Toan said the projects do not yet meet the conditions for commencement required under the 2025 Construction Law, and that the province has asked the investor to resolve legal and technical requirements by August 30 or face a review that could lead to recommendations to higher authorities.
Financing Terms Remain A Sticking Point
Long An Energy Group general director Tran Thanh Hai said the company has deposited VND525 billion ($19.9 million) for land lease since 2020 and continues to negotiate a final land lease contract. He said the larger obstacle is securing funding, as elements of the current legal framework and the draft power purchase agreement do not satisfy the requirements of international credit institutions. The investor has proposed adding a standby payment mechanism and a fuel take-or-pay recovery mechanism to improve the project’s financial feasibility, and said construction could begin within three to six months of signing a finalized power purchase agreement.
Deputy Minister of Industry and Trade Nguyen Hoang Long described the project as playing a crucial role in supplementing regional and national power supply and called on the investor and its partners to continue negotiating and sharing risk to meet the conditions for commencement.
The delay fits a broader pattern across Vietnam’s LNG pipeline. Reporting on the sector has noted that four years after Vietnam set a target of 22.5 gigawatts of LNG capacity by 2030, the country has only one operating LNG complex, with a second smaller project in progress, while most other planned plants remain stalled, delayed or reconsidered. GS Energy had previously targeted 2028 for bringing the Long An plants online when the projects still carried an estimated $3 billion price tag.
