PV Power (POW) and PV GAS Sign LNG MoU for 1,500 MW Vung Ang III

Overview

Tổng công ty Khí Việt Nam (PV GAS) and Tổng công ty Điện lực Dầu khí Việt Nam - CTCP (PV Power, ticker POW on HOSE) signed a Memorandum of Understanding on 28 July covering the supply of regasified LNG for the Vung Ang III LNG thermal power plant in Hà Tĩnh Province. The project carries designed capacity of about 1,500 MW and total investment exceeding VND 51,430 billion, making it one of the largest gas-fired power developments approved under the national electricity plan. The MoU matters for POW because it converts a long-dated generation project into a concrete fuel-supply pathway, and for PV GAS (ticker GAS on HOSE) because it anchors a new domestic offtake channel for imported LNG.

Key Facts

• Hà Tĩnh Provincial People’s Committee issued the investment approval decision for the Vung Ang III LNG plant on 9 June 2026, at Hoành Sơn ward.
• Designed capacity: approximately 1,500 MW; total investment: more than VND 51,430 billion (about USD 2.06 billion).
• Site footprint: about 51.71 ha of land and 15.96 ha of sea surface.
• Commercial operation targets: Unit 1 in Q1 2031, Unit 2 in Q2 2032.
• Expected fuel consumption at operation: roughly 1 billion Sm3 of regasified LNG per year.
• MoU signed on 28 July during a working session between Petrovietnam and Hà Tĩnh Province; PV GAS is the intended LNG supplier, PV Power the buyer.
• The MoU is a framework only; the parties will continue technical and commercial negotiations toward a formal gas sales and purchase agreement.

What Happened

The Vung Ang III project was formally cleared on 9 June 2026, when the Hà Tĩnh Provincial People’s Committee issued a decision approving both the investment policy and the investor for the LNG thermal power plant at Hoành Sơn ward. The approved scope covers roughly 51.71 hectares of land and 15.96 hectares of sea surface, with two generating units and a combined investment of more than VND 51,430 billion. Provincial authorities framed the project as a contributor to national electricity security and to the socio-economic development of Hà Tĩnh.

The fuel-supply leg followed on 28 July, during a working session between Tập đoàn Công nghiệp - Năng lượng Quốc gia Việt Nam (Petrovietnam) and Hà Tĩnh Province. At that session, PV GAS and PV Power signed a Memorandum of Understanding for the purchase and sale of regasified LNG for the Vung Ang III plant. Under the MoU, PV GAS is expected to act as the regasified LNG supplier and PV Power as the buyer of gas for plant operations once the project is commissioned. The document is explicitly a basis for further study, negotiation and completion of commercial and technical terms, with the stated aim of reaching a formal gas sales contract. Separately, on the afternoon of 6 October, Chairman of the Hà Tĩnh Provincial People’s Committee Phan Thiên Định asked the provincial economic zone authority and relevant units to resolve bottlenecks, particularly land clearance, resettlement and infrastructure completion, to accelerate key projects in the Vũng Áng economic zone. Of 81 tasks assigned by the provincial government, 36 had been completed as of that report.

Market Context

POW closed at VND 12,650 on 6 October 2026, while PV GAS (GAS) closed at VND 79,300 on the same date. Both tickers sit within the Petrovietnam ecosystem and the energy and infrastructure complex on HOSE, where sentiment has been shaped by the pace of gas-fired capacity additions under the national power development plan. Vung Ang III is one of several LNG-to-power projects intended to absorb imported volumes through the 2030s, and its progress is read alongside the broader build-out of LNG terminals and regasification capacity in the Bắc Trung Bộ region.

Strategic Significance

For POW, the MoU addresses the single largest execution risk in any LNG-to-power project: securing a contracted fuel supply before committing capital to turbines and grid connection. A binding gas sales agreement would give the company a visible cost input for a plant that is expected to consume about 1 billion Sm3 of regasified LNG annually, and it strengthens the case for POW as the listed vehicle for Vietnam’s gas-fired generation pipeline. For GAS, the agreement would add a long-term domestic offtake anchor for imported LNG, supporting utilisation of regasification infrastructure and reducing exposure to spot-market volatility. The competitive dynamic is regional: Vung Ang III sits inside the Vũng Áng economic zone, where industrial demand and transmission constraints will determine how quickly the 1,500 MW is absorbed into the grid.

What to Watch

• Execution of a formal gas sales and purchase agreement between PV GAS and PV Power, replacing the non-binding MoU.
• Land clearance and resettlement progress at Hoành Sơn ward, following the 6 October provincial review of the 81 assigned tasks.
• Final investment decision and engineering, procurement and construction contract awards for the two units.
• Confirmation of the Q1 2031 and Q2 2032 commercial operation dates in subsequent project disclosures.
• Any update on LNG import and regasification arrangements serving the Bắc Trung Bộ region.