Delegates attend to the facility's ground-breaking ceremony on Monday. — VNA/VNS Photo Hoang Nhi

Construction of the Thi Vai liquefied natural gas (LNG) storage facility began in the southern province of Ba Ria-Vung Tau on Monday.

Financed by PV Gas, a subsidiary of the national oil and gas group PetroVietnam, the facility will cost an estimated US$285 million in the first phase.

Phase one is slated for completion in 2022 with a designed capacity of one million tonnes. The second phase to double the capacity scheduled for completion the following year.

The LNG storage facility is part of a series of gas and power projects that includes Nhon Trach 3 and Nhon Trach 4 gas-fired power plants in the Thi Vai-Nhon Trach area, said PV Gas General Director Duong Manh Son.

Son said this facility and the two Nhon Trach power plants will help ensure gas and electricity demand for the south-eastern key economic zone.

Once completed, the facility can receive LNG shipping vessels with a capacity of up to 85,000 tonnes and provide 1.4 billion cubic metres of gas for the two power plants and other industrial customers.

In his speech at the ground-breaking ceremony, National Assembly Vice Chairman Uong Chu Luu praised on the project, saying it is not only significant to PV Gas but also an important milestone in the implementation of the national energy development strategy.

Also at the ceremony, a credit financing agreement for the project was signed between PV Gas and domestic and foreign banks, under which the foreign loan is $80 million while the domestic loan is VND2.1 trillion ($90.1 million). — VNS