PetroVietnam Power Corporation, a unit of PetroVietnam, has inaugurated a 463MW power plant in the southern province of Dong Nai, Vietnam.

The power plant is expected to meet the growing energy demands of the province and its neighbouring localities, writes Vietnam news site ThanhNien Daily.

The VND 6.5tn (US $365m) Nhon Trach 1 Power Plant will run on natural gas from the Nam Con Son and Cuu Long basins, using diesel oil as a backup fuel, according to a government statement.

The Nhon Trach 1 power plant will generate between 2.2 and 2.5 billion kWh a year.

The plant, which opens after more than two years of construction and testing, will help boost economic development in Ho Chi Minh City and three southern provinces – Dong Nai, Binh Duong, and Ba Ria-Vung Tau.

The 750-MW Nhon Trach 2 Power Plant, also in Dong Nai Province and currently under construction, is expected to launch near the end of 2011, PetroVietnam Power said.

Vietnam’s national power-generation capacity is expected to increase to around 17,900MW this year.