France's EDF, Vietnam Sign MoU

French state power giant EDF has come a step nearer to building a 2.25-GW combined-cycle gas-fired (CCGT) power station in Vietnam by signing a memorandum of understanding with the government.

"The signing of this MoU marks a major milestone by opening the way to the negotiation of different agreements that will ultimately lead to the final investment decision," EDF said November 2.

The project involves the construction and operation, over a 20-year period, of a 2.25-GW high-efficiency and environmentally sustainable CCGT in Binh Thuan province, to the north-east of Ho Chi Minh city. It is aligned with Vietnam’s energy diversification policy while fulfilling a dual purpose: meeting the growing demand for electricity and reducing the proportion of coal in Vietnam’s energy mix (34%) in favour of gas and renewables, EDF said.

Already active in Vietnam via its subsidiary the Mekong Energy Company in which it holds a 56.25% stake and which operates the Phu My 2.2 CCGT (715 MW), EDF will use its experience in the construction and operation of combined-cycle plants worldwide. The new facility is expected to be commissioned by 2024. In March of this year, the EDF Group was appointed leader of the consortium (37.5%) set up to design the project along with its Vietnamese partner Pacific Corporation (25%) and two Japanese partners, Sojitz corporation (18.75%) and Kyushu Electric Power Co (18.75%).

There was no comment on the source of the gas that would supply the large plant, but LNG is one possibility. The gas subsidiary of PetroVietnam and the US state of Alaska signed a letter of intent November 5  covering purchases of LNG from the projected 20mn mt/yr plant to be built at Nikiski on the Alaskan coast.