B.GRIMM Power and PV Power Sign LNG Vung Ang III Deal Worth VND 51,430B

Overview

B.GRIMM Power and PV Power (POW) signed a cooperation agreement to develop the LNG Vung Ang III power plant project in Ha Tinh province, with a total investment of approximately VND 51,430 billion (USD 2.06 billion) and a capacity of 1,500 MW. The project is expected to reach commercial operation between 2030 and 2031, reinforcing POW’s strategic shift toward LNG as a transition fuel.

Key Facts

• Total investment for LNG Vung Ang III is approximately VND 51,430 billion (USD 2.06 billion).
• The plant will have two generating units with a combined capacity of 1,500 MW.
• PV Power (POW) holds a 51% stake in the project, B.GRIMM Power holds 34%, and LILAMA holds the remaining 15%.
• The project is located in Hoanh Son ward, Ha Tinh province, in north-central Vietnam.
• Commercial operation is targeted for 2030-2031.
• The signing took place at the Thailand-Vietnam Economic Forum 2026, witnessed by senior leaders from both countries.
• The project is expected to contribute approximately VND 3,000 billion per year in state budget revenue over 25 years of operation.

What Happened

On the sidelines of the Thailand-Vietnam Economic Forum 2026, B.GRIMM Power and PV Power formally signed a cooperation agreement to develop the LNG Vung Ang III power plant. The ceremony was witnessed by Vietnam’s General Secretary and President To Lam and Thailand’s Prime Minister Anutin Charnvirakul, underscoring the strategic importance of the deal in bilateral economic relations.

The project is proposed by a consortium comprising PV Power (51%), B.GRIMM Power (34%), and LILAMA (15%). The plant will use LNG as fuel, aligning with Vietnam’s policy to reduce coal-fired power and diversify energy sources. The investment figure of VND 51,430 billion was disclosed in the agreement, though the final cost may be subject to adjustments during the feasibility study and construction phases.

Market Context

POW shares closed at VND 13,850 on May 28, 2026, down 1.42% on volume of 7.06 million shares. The stock has been under pressure amid broader market weakness and uncertainty around the timeline for new LNG projects. POW, listed on HOSE, is one of Vietnam’s largest power generators, with a portfolio that includes gas-fired, coal-fired, and hydropower plants. The LNG Vung Ang III project represents a long-term growth catalyst, but its 2030-2031 COD means near-term earnings impact is minimal.

Strategic Significance

The partnership with B.GRIMM Power, a Thai energy conglomerate with deep LNG expertise, provides POW with technical and financial backing for a large-scale LNG project. Vietnam’s power demand is growing at 8-10% annually, and LNG is positioned as a key transition fuel as the country phases down coal. For POW, the project diversifies its fuel mix and strengthens its position in the north-central region, where power supply is tight. The 51% controlling stake allows POW to consolidate the project’s financials, potentially boosting its long-term earnings base.

What to Watch

• Final investment decision (FID) timeline and any updates on financing arrangements.
• Progress on LNG terminal infrastructure at Vung Ang, which is critical for fuel supply.
• Regulatory approvals from the Ministry of Industry and Trade and the Prime Minister.
• POW’s Q2 2026 earnings report for updates on existing plant performance and cash flow.
• Any changes in the project’s cost estimate or timeline as detailed feasibility studies are completed.