A power purchase agreement (PPA) has reportedly been signed and a groundbreaking ceremony held for a 1,200-megawatt (MW) liquefied natural gas (LNG) power plant in Hiep Phuoc commune, Ho Chi Minh City, Vietnam. This is said to be the second PPA signed since Vietnam’s new decree on LNG power (56/2025/ND-CP) took effect.
Vietnam Electricity (EVN) and Hiep Phuoc Power are the contracting parties, and Siemens gas turbine technology is reportedly set to be used. The plant is located in Hiep Phuoc commune, with planned annual generation of more than 7 billion kilowatt-hours (kWh).
The plant’s capacity is 1,200MW, with total investment of approximately VND 18.9 trillion (about $892 million). Annual generation is planned at more than 7 billion kWh, and the contract signing and groundbreaking reportedly took place in March 2026.
Vietnam is pursuing a policy of expanding the share of LNG power under its eighth national power development plan (PDP8), and this PPA is seen as evidence that a commercial foundation for LNG power projects is being established under the new decree.
As Southeast Asian countries expand LNG power generation as a means of replacing coal-fired plants, the tightening of related regulatory frameworks appears to be translating into a growing number of actual PPA signings and groundbreakings. This is viewed as a factor generating new demand across gas turbine suppliers and the broader LNG procurement and infrastructure industry.
Points to watch include the plant’s completion timeline and whether commercial operation begins as planned, as well as the specific terms of LNG feedstock procurement contracts.