The Ministry of Industry and Trade is concerned the investor of a $4-billion power plant won’t be able to commit to its proposed electricity price tag.
The trade ministry supports inclusion of a 3,200 MW liquefied natural gas-fired power plant in the Mekong Delta province of Bac Lieu as part of the national power plan. However, it expressed concerns that investor, Singapore-based Delta Offshore Energy (DOE), has proposed a selling price too low at 7 U.S. cents per kWh.
This is lower than the average electricity production price in Vietnam. In the south, even coal-fired electricity is priced at 7.8 cents per kWh, the ministry confirmed, adding a gas-fired project could typically charge 8.39 cents per kWh.
Although the 7 cent price tag would benefit Vietnam, the ministry is concerned the investor won’t be able to honor its commitment in the long run.
The plant’s location holds an additional geographical disadvantage: a fairway is needed as the plant is 35 kilometers from the LNG terminal, it said.