Lam Dong province is positioning itself as one of Vietnam’s largest energy centers, with two major liquefied natural gas (LNG) power projects - formerly part of Binh Thuan province - slated to come online in 2028, adding a combined capacity of 4,500 MW.

Massive projects in the pipeline

According to the Department of Industry and Trade, Lam Dong currently produces 31.6 billion kWh annually from power plants with a combined generation capacity of 6,520 MW - accounting for 8% of the country’s total.

The two LNG power projects - Son My I and Son My II - each have a capacity of 2,250 MW. These projects are part of Vietnam’s national Power Development Plan VIII and have received government approval.

The Son My I thermal power plant is being developed under a BOT agreement by a consortium including Electricité de France SA (France), Kyushu Electric Power Co. Inc. and Sojitz Corporation (Japan), and Pacific Group JSC (Vietnam), with an investment of approximately USD 2.2 billion. Son My II, invested by the US-based AES Corporation, has an estimated investment of USD 2.1 billion.

These investors are currently awaiting approval of feasibility reports from the Ministry of Industry and Trade, while environmental impact assessments have already been cleared by the Ministry of Natural Resources and Environment. Both projects are expected to begin operations in 2028.

A key support facility, the Son My LNG terminal, will cover over 3,500 hectares - including 50 hectares for LNG storage and 3,455 hectares for the LNG import port. Developed by Son My LNG Terminal Co., Ltd., it has a total investment of USD 1.34 billion and is expected to be operational by Q1/2027 to serve both LNG power plants.

The two LNG power plants will raise Lam Dong’s total installed capacity to 8,523 MW, representing 10.58% of the nation’s total.

Additionally, several investors have proposed offshore wind power projects in the former Binh Thuan province waters, with a combined capacity of around 25,000 MW. The Prime Minister and the Ministry of Industry and Trade have given the green light for Enterprize Energy to conduct surveys for the Thang Long Wind offshore wind project.

Addressing roadblocks

The Lam Dong People's Committee reports that the LNG projects will require site clearance over 137 hectares from 11 households and organizations. As of mid-March, the province has reviewed the legal status of all affected land and approved compensation plans for over 117 hectares. For the LNG terminal, 69 hectares need to be cleared from 65 entities, with legal assessment completed for over 60 hectares and compensation approved for 6 hectares.

The provincial government has requested that the Ministry of Industry and Trade expedite approval of feasibility studies for both LNG projects and authorize grid connection plans via 220kV and 500kV transmission lines to integrate the Son My Power Center with the national grid. The province also proposed including two offshore wind projects totaling 2,000 MW into the national grid planning scheme.

Moreover, Lam Dong is seeking central government approval for a pilot mechanism allowing early implementation of offshore wind projects during 2025–2030. It also faces challenges as nine key energy infrastructure projects cannot proceed due to their location within areas designated as national titanium reserves. The province has asked the Ministry of Natural Resources and Environment for guidance to remove legal and procedural hurdles.

At a recent meeting on project progress, former leaders of Binh Thuan province emphasized the urgency of site clearance and resettlement arrangements to avoid delays. Despite efforts, the LNG projects remain behind schedule.

Once operational, these strategic energy projects are expected to transform Lam Dong into one of Vietnam’s largest energy hubs, with total generation capacity surpassing 11,000 MW by 2030.

PV