US-Vietnamese joint venture (JV) Chan May LNG has reportedly planned to invest nearly $6bn in a power project in Vietnam.

Chan May LNG CEO John Rockhold said his company will build the LNG project in Thua Thien Hue province. Plans include a 4GW power plant, LNG terminal and storage facilities.

Construction works at the site will begin from next year, with the initial phase of 2.4GW capacity coming online in 2024. The power plant will use General Electric turbines.

The entire facility is slated to become operational in 2027.

According to Reuters, Chan May LNG plans to cash in on the increasing demand for electricity in the country.

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Financial institutions, including the US International Development Finance, US Exim Bank and the International Finance Corp have expressed interest in financing the project.

Rockhold added: “We have big support from the US government for the project, as they have LNG to sell. We have a number of US LNG suppliers and we are doing the shopping right now.”

Once fully operational, LNG worth nearly $1.2bn would be imported from the US annually for the project.

An investment licence for the project is expected to be received this year.

The news agency reported that the country is at risk of power shortages from next year, as electricity demand begins to outpace the construction of power plants.

US investors hold a 60% stake in the JV company, while the remaining 40% is held by Vietnamese investors.