Central Vietnam province Nghe An asks investors to accelerate $2.2 bln LNG power project

Authorities in Nghe An province have ordered the consortium developing the $2.25 billion Quynh Lap LNG-to-power plant to expedite key procedures and keep the project on track for commercial operation by 2030.

In a directive issued more than a month after groundbreaking for the 1,500 MW project's technical infrastructure took place, the provincial People's Committee instructed the investors to complete the establishment of a project company in line with regulations and coordinate with the provincial Department of Finance and relevant agencies to finalize outstanding issues and sign the project contract by the end of June 2026.

The consortium comprises of PV Power - a subsidiary of state-owned energy giant Petrovietnam, Nghe An Sugar Co. Ltd. and South Korea's SK Innovation Co., Ltd.

Authorities also asked the investors to accelerate preparation of the detailed 1:500 construction plan, the feasibility study and other required documentation.

They instructed the consortium to review all remaining work, prepare a detailed implementation schedule for each component and define clear completion milestones to ensure compliance with the country's adjusted Power Development Plan VIII.

The people's committee warned that any delays caused by subjective factors would be the responsibility of the investors, who must report progress to it by July 2.

According to the provincial Department of Industry and Trade, although it has asked the consortium to implement the required tasks, several items remain behind schedule.

The finance department is currently working with the investors and relevant agencies to finalize a second draft of the project contract, while the consortium continues to negotiate key contractual terms before submission for provincial approval.

The consortium is also negotiating shareholder agreements and the charter of the project company as part of the incorporation process. Given the volume of work and the need to comply with internal approval procedures of each consortium member, completion is now expected in the early part of the third quarter of 2026.

Officials said preparation of the detailed 1/500 planning documents and feasibility study under Vietnam's Construction Law requires multiple stages, including surveys, measurements, testing and engineering design, making completion by the end of June unlikely. Consultants have begun preliminary work, including site surveys, data collection and technical and legal reviews.

The Quynh Lap LNG power plant, located in Tan Mai ward, has a planned generating capacity of 1,500 MW and total investment of more than VND59.37 trillion ($2.25 billion), making it the largest energy project ever undertaken in Nghe An province. It will consist of two combined-cycle gas turbine units with capacity of 750 MW each.

The project will also include an LNG storage facility with capacity of around 250,000 cubic meters, a regasification system and a dedicated port capable of receiving LNG vessels of up to 150,000 tons. Annual LNG import demand is estimated at roughly 1.15 million tons.

Once operational, the plant is expected to contribute between VND6 trillion and VND7 trillion ($265.87 million) annually to the provincial budget, making it one of Nghe An's largest sources of fiscal revenue.

Earlier in February 2026, the provincial People’s Committee had granted in-principle approval and selected investors for the project.