Vietnamese Prime Minister Pham Minh Chinh on Saturday attended the inauguration of a US$1.8 billion thermal power plant in the Mekong Delta province of Hau Giang, the Vietnam Government Portal reported.

The Song Hau 1 Thermal Power Plant, costing more than VND43 trillion ($1.8 billion), is located in Mai Dam Town, Chau Thanh District, Hau Giang Province.

Developed by state-run Vietnam National Oil and Gas Group (PVN), the project was initiated in 2015 and put into commercial operation on May 6.

With the total capacity of 1,200MW, the plant has so far generated and supplied over two billion kWh of electricity to the national grid.

The facility is expected to contribute about 7.2 billion kWh a year to the national grid, meeting the demand for electricity of the southwestern region and Vietnam in general.

Its annual revenue is forecast to reach about VND15-20 trillion ($639.5-852.6 million), making an important contribution to PVN’s total revenue, and to the central and local budgets.

At the ceremony, PVN pledged to operate the plan in a safe, stable, and efficient manner, and to cooperate with Vietnam Electricity Group (EVN) in optimizing the power output of the plant.

The group will also work with local authorities to ensure social security for residents and protect the environment.

The combined capacity of PVN's power plants has reached 5,405MW, accounting for more than seven percent of the total capacity and about 10 percent of the electricity output of the entire national power system.

PM Chinh said that the inauguration of Song Hau 1 Thermal Power Plant is of great significance as it helps ensure the country’s energy security.

The operation of the plant will also help promote growth, economic restructuring, and the industrialization process of Hau Giang Province as well as the whole country, the premier added.

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