The Ca Mau Gas-Power-Fertiliser Complex, which will fire natural gas to generate power, will have a combined capacity of 1,500MW, according to PetroVietnam, sole investor of the project. Gas for the complex will be sourced from Bunga Kekwa (Bloc PM3) offshore gas field, about 600km south of HCM City, via a 325km heavy duty pipeline.

“This is a significant project as it will help Vietnam overcome power shortages, and also accelerate its ongoing industrialisation and modernisation process,” said Deputy Prime Minister Nguyen Tan Dzung at the groundbreaking ceremony.

He said the project will help Vietnam reach its power generating target in 2010, when the total power output is proposed to double the current total output of 55 billion kWh. He asked investors, project partners, constructors, workers and technicians to work hard to complete the plant on schedule.

The plant, with two turbines, will be built by the country’s largest machinery installer, the Vietnam Machinery Installation Corporation (Lilama). The corporation is the key contractor for designing and installing the specialised machinery, and conducting trial runs upon completion of the project.

Sub-contractor Siemens AG (Germany) will supply the main equipment for the power plant, valued at about US$210 million.

According to the Ministry of Industry, Vietnam’s demand for electricity is expected to grow 15 percent annually till 2010. The country is purchasing power from China to prevent shortages in the north, and plans to purchase power from Laos in 2008.