Up to 3,900MW in total from Phu My 1, 2-1, 2-2, 3, and 4
The Phu My project is the largest in Vietnam, comprising a series of power plants with a combined capacity of up to 3,900MW. It is located in the village of Phu My in Ba Ria-Vung Tau province in the southern part of Vietnam. The complex includes the Phu My 1, 2-1, 2-2, 3 and 4 plants. Together, they meet about 40% of the country’s energy needs.
Vietnam has a severely underdeveloped electricity infrastructure but a rapid growth in electricity demand. The government’s policy of opening the market has created rapid economic growth. It has therefore encouraged rapid expansion in generation capacity to meet this. It is estimated that Vietnam needs to increase its electricity generation from 27 million MW in 2000 to 80 million MW in 2005, 80 million MW in 2010 and 200 million MW in 2020. To do this, the country will need several more power plants.
The Phu My 1 power plant was built by Mitsubishi Heavy Industries (MHI). It has three combined-cycle gas turbines with outputs of 230MW each, as well as a steam turbine producing 360MW. It is estimated that the project cost $530m.
The turbines are linked in a combined cycle. The plant was ordered in September 1998 and commissioned in May 2000. The steam turbine was added in December. The fully operating power plant can produce 1,090MW.
Japan’s Overseas Economic Co-operation Fund (OECF) and its Overseas Development Agency (ODA) was involved in the financing. Japan provided 85% of the finance and the Vietnamese government contributed 15%.
The New Japan Engineering Consulting Corporation appraised the project and helped supervise construction. VietSovPetro, a Russian-Vietnam gas and oil joint venture, supplyies natural gas from an offshore field. The new contract needed investment in gas extraction and transportation equipment by the joint venture. Robertson provided engineering site supervision and project management to the site.
Phu My 2-1 Extension Power Plant is an extension to the existing 300MW plant, also with an output of 300MW. It is installed with two GT13E2 gas turbines supplied by Alstom. The second phase extension involved a 56MW steam turbine add-on. These are in simple cycle, with the V94.2 turbines supplied by Siemens. This was a build operate transfer (BOT) plant.
The contract was signed on 23 January 1998 after being put out to tender in August 1997. Siemens put the value of the project at $80m. It was the third contract that Siemens and Mitsui won in co-operation with each other in Vietnam. The plant was commissioned at the end of 2002, with the rapid turn-around dictated by Vietnam’s pressing need for electricity. The extended plant has an output of 600MW.
Phu My 2-2 is a 715MW power plant. The project is a 20-year BOT project headed by Electricité de France (EDF). EDF put the cost of the project in the region of $400m. Other members of the consortium are Sumitomo and the Tokyo Electric Power Company (TEPCO).
The gas is provided by Petrovietnam, the state-owned gas company, from the Nam Con Son offshore gas field. Electricité de Vietnam buy the electricity. The World Bank provided the consortium with a £75 million loan for technical assistance.
The Phu My 3 power plant is a 740MW combined-cycle gas turbine facility whose cost is estimated at $412m. Construction eventually started in mid-2001 after three cancellations by the government and four years of negotiations. It is the first foreign built BOT. It is wholly owned by BP who will burn gas from the field in Block 06-1, Nam Con Son Basin, which was discovered by BP and includes the construction of a 400km pipeline.
The consortium awarded the engineering, procurement and construction contract for supplying and installing the generators to Siemens. The plant has two 250MW Siemens SGT5-4000F gas turbines combined with a 250MW steam turbine (Siemens SST5-5000). The plant started commercial operation in 2004.
The long-term service programme (LTP) contract extension of Phu My 3 was awarded to Siemens in January 2013
EVN awarded the $240m contract for the Phu My 4 power plant to Siemens, despite complaints that no other tenders were accepted. The Ministry of Industry approved the 450MW design, which was commissioned in June 2002 and started operating in 2004.
Alstom provided two GT13E2 gas turbines for the plant. In March 2011, the long-term service agreements (LTSA) for Phu My 4 and Phu My 2-1 were renewed with Alstom for another eight years
The World Bank provided a £75m loan for technical assistance, the latest of many focused on rural delivery. In 1995, some 50% of rural inhabitants in Vietnam had access to electricity. That figure today is 90%.
Since the early 1990s, the World Bank has financed the Phu My 2-1 power station gas turbines through an IDA credit, provided a partial credit guarantee for Phu My 2-2 (also through IDA), as well as a political risk guarantee for Phu My 3 through MIGA.
Fuel for the whole power plant comes from White Tiger field (associated gas) and Nam Con Son (natural gas). Standby fuel is distilled oil. In 2004, the Nam Con Son Gas Project, Vietnam’s largest gas to power venture, celebrated the production of its two billionth tonne of gas after 18 months of production. The project supplies Phu My 1, 2-1 and 3.
The gas project taps reserves discovered in the Lan Tay and Lan Do fields contain around 58 billion cubic metres of gas and are expected to last for 20 years. NCSP’s total production was around 2.4 billion tonnes of gas in 2004. The pipeline has a capacity of up to 7 billion cubic metres per year, more than the Lan Tay and Lan Do gas fields can provide. Other fields will be able to supply it in the future.
BP is the operator until 2008, when management will be transferred to PetroVietnam.
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