Vietnam-based electric services company PetroVietnam Power Corporation (PV Power) has agreed to facilitate a syndicated $1.4bn loan for the construction of two liquefied natural gas (LNG) power projects.

The company signed an agreement for the loan with a consortium of two banks in Vietnam.

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The Nhon Trach III and IV plants have a total capacity of 1,500MW and received government approval in 2018.

PV Power chose Techcombank and Military Bank to facilitate and lead an investor group for this transaction.

The company said that the two plants will be built in the southern province of Dong Nai and are expected to come online from the fourth quarter of next year.

They will join the Nhon Trach I and II plants, which are already operational in the region.

The Nhon Trach I and II plants have a total capacity of 1,200MW and currently run on locally produced LNG fuel.

Vietnam Industry and Trade Minister Nguyễn Hồng Diên has said that the country plans to start importing LNG from 2023 in response to rising domestic demand for electricity.

In February, PV Power appointed Citibank and ING Bank to arrange funds for the Nhon Trach III and IV plants to expand its LNG-based power complex in southern Vietnam.

At the time, the company said that the two power plants would be operated using imported LNG.

In August 2018, PetroVietnam signed a deal with two Japanese companies to sell gas from a South China Sea oil block near waters overlapping with Chinese territory.

The deal concerned the Sao Vang-Dai Nguyet project, a gas and condensate field located 300km south-east of Vietnam’s coast.

Sao Vang-Dai Nguyet is partly owned by Japanese petroleum company Idemitsu Kosan, which holds a 43.08% ownership of the project.

Japanese oil firm Teikoku Oil holds 36.92%, while PetroVietnam owns the remaining 20%.