Central Vietnam province seeks to accelerate LNG-fired power plant projects

Nghe An province is seeking guidance from relevant ministries on the conditions and criteria to determine whether the Quynh Lap LNG-fired power plant in the locality qualifies as "an urgent project requiring immediate implementation".

In a document sent to the Ministry of Finance and the Ministry of Industry and Trade, the provincial People’s Committee explained that early implementation of the Quynh Lap and the Nghi Son LNG power plant in the neighboring province of Thanh Hoa is essential to realize the adjusted Power Development Plan VIII (PDP VIII) and its roadmap, ensuring the projects come online in the 2025-2030 period as planned and contribute to national energy security.

The move followed a proposal by South Korean chaebol SK Group to integrate the two projects, under which key components, including an LNG terminal (within Quynh Lap Port in Nghe An), an LNG storage facility and related infrastructure, and a 500kV air-insulated switchgear (AIS) substation, would be shared by both projects.

The integration is expected to deliver overall economic efficiency, promote regional connectivity, reduce investment capital, and save land for project development, it said.

It would also lay the groundwork for establishing a regional LNG hub, with potential for future expansion, while helping to avoid overlapping infrastructure investments and ensuring lower development and operating costs, as well as more competitive power prices.

The committee said integrating a shared LNG storage facility for the two thermal power plants would require approval from competent authorities to amend the National Energy Master Plan.

It added that the integration of the two projects, which would share an LNG terminal, also necessitates adjustments to the province’s detailed land and water area development plan for 2021-2030, with a vision to 2050, as approved by the Minister of Construction under a decision dated July 9, 2025.

SK Group proposed that the government consider applying a special investor selection mechanism and designate it as the investor for the Nghi Son-Quynh Lap project.

In its report to Prime Minister Pham Minh Chinh, the Ministry of Finance suggested that, if the Nghi Son and Quynh Lap LNG projects are classified as "urgent", Thanh Hoa and Nghe An provinces should select an investor, ensuring the projects meet planning schedules, quality standards, and economic efficiency.

The Nghe An People’s Committee said the Quynh Lap project is listed under the “catalogue and expected schedule of nationally important power projects and sector-priority projects,” but the province has no sufficient grounds yet to classify it as "an urgent project requiring immediate implementation".

It is stipulated that a project must be put out to tender if two or more investors express interest.

In October 2024, Nghe An received dossiers from five investors proposing to develop the Quynh Lap project.

They include a consortium of PV Power, Nghe An Sugar LLC, and SK E&S Co., Ltd; Power Generation Corporation 1 (EVNGENCO 1); South Korea’s Posco International and Trung Nam Construction Investment JSC; Japan’s Sumitomo Corporation; a consortium comprising Viet Thanh Bamboo Energy Investment JSC and Qatar’s Gulf Petroleum Limited.

Particularly, both SK Group and Posco, another South Korean chaebol, submitted requests to integrate the LNG terminal, LNG storage facility, and associated infrastructure so that they can be shared by the Quynh Lap and Nghi Son plants.

Given this, the provincial People’s Committee has requested guidance from the two ministries on the conditions and criteria for determining whether the project qualifies as urgent and requires immediate implementation.

In cases where an investor undertakes both the plants, the committee suggested that competent authorities assign one ministry to lead the investor selection process.

The $2.15 billion Quynh Lap LNG thermal power plant will be located in Dong Minh and Dong Thanh villages in Quynh Lap commune, former Hoang Mai township. Covering about 210 to 360 hectares, it is designed to have a capacity of 1,500 MW and will require approximately 1.15 million tons of LNG annually.

The facility is set to begin commercial operations before 2030, as part of Vietnam’s broader energy transition strategy.

It will comprise an LNG-fired power plant, a gas storage facility, an LNG terminal capable of receiving ships of approximately 100,000 DWT, and supporting infrastructure.

In July, a delegation from SK Group held a working session with Nghe An authorities to explore investment opportunities for the Quynh Lap project.

Meanwhike, the Nghi Son LNG power project received investment approval in March 2024 and is expected to become one of the key LNG power sources in the region.

The project has a total investment of over VND57 trillion ($2.16 billion) and a designed capacity of 1,500 MW. It is set to cover nearly 68 hectares in Hai Ha commune of the former Nghi Son township (now Nghi Son ward).

Key components include a combined cycle gas turbine plant, an LNG regasification terminal with a capacity of 1.2 million tons per year, an LNG storage facility, and an import terminal.