Vietnam starts Quang Trach II LNG power plant

Quang Trach II carries a total investment of more than 40.12 trillion dong, or about $1.6 billion, with 20% financed by equity and 80% by commercial loans. The funding is being syndicated by Vietcombank, VietinBank, BIDV and Agribank, underscoring the role of domestic lenders in financing large-scale energy infrastructure.

The plant is being built by a PowerChina-LILAMA joint venture under an EPC contract worth more than 25.2 trillion dong. It will use combined-cycle gas turbine technology and GE Vernova 9HA.02 turbines, a high-efficiency setup that Vietnam says will improve operational flexibility and help cut emissions versus older coal generation.

For investors, the project reinforces the long-term buildout of Vietnam’s power sector and the need for equipment, construction and financing tied to LNG infrastructure. It also points to rising strategic demand for gas-fueled generation in Asia at a time when LNG supply remains a global concern, with buyers seeking firmer supply and more resilient contract structures.

EVN says the first unit at Quang Trach II is scheduled to start commercial operation in February 2030, with the second unit due in April 2030. Execution risk now shifts to construction milestones, fuel sourcing and grid integration, all of which will shape whether the project helps ease Vietnam’s power constraints on schedule.