PetroVietnam Power (PV Power) has signed a short-term loan agreement worth $300 million with Citibank and ING to supplement capital for the Nhon Trach 3 and Nhon Trach 4 power plants, which are the first liquefied natural gas (LNG)-to-power plants in Vietnam.
The deal was signed during a ceremony in Hanoi on April 4. PV Power is currently the nation’s second-largest electricity producer and the market leader for gas power.
At the ceremony, Hoang Van Quang, chairman of the Board of Directors of PV Power, said that the company’s power plant projects have attracted the interest of both local and international credit organisations. He hoped that the tie-up would continue to develop and achieve high efficiency in the future.
The Nhon Trach 3 and 4 power plants are only a few of the large capital-intensive projects in which PV Power is now investing in. The capital sources for these projects may be mobilised from both domestic and foreign companies, the export credit agency, and foreign trade loans with competitive terms and interest rates.
Both representatives of Citibank and ING also expressed their pride in contributing to the capital arrangement process of the power plants, which are of strategic importance in ensuring national energy security.
Work on Nhon Trach 3 and 4, which have a total estimated investment of $1.4 billion, commenced in 2021 at Ong Keo Industrial Park in Nhon Trach district in the southern province of Dong Nai. This is the nation’s first LNG power plant project, which is scheduled to begin operation by the end of 2024 at the earliest.
In addition to the $300 million short-term loan, PV Power is also working with Citibank and ING for a long-term loan of $600 million for the same purposes.
