Central Vietnam province Thanh Hoa seeks clarity as $2.2 bln LNG power project draws no bidders

Authorities in Thanh Hoa province are seeking answers after a flagship LNG-to-power project worth VND57 trillion ($2.17 billion) failed to attract an investor.

Seeking an investor under “special circumstances”

According to the management board of the Nghi Son Economic Zone and Industrial Parks, the Nghi Son LNG power project is listed as a priority investment under the adjusted eighth Power Development Plan VIII (PDP VIII), with completion targeted for the 2025-2030 period.

It is also classified as a nationally important and key energy-sector development under the Prime Minister’s Decision No. 2634/QD-TTg dated December 2, 2025.

The project received in-principle approval in March 2024 and was put out to tender in April 2025 through a restricted bidding process, limited to investors that had submitted valid expressions of interest. However, no bids were submitted, prompting the management board to cancel the tender.

Following the cancellation, the agency reported to the provincial People’s Committee and proposed selecting an investor under “special circumstances” as permitted by the Law on Bidding.

At a recent meeting with relevant agencies to address project bottlenecks, Nguyen Hoai Anh, Chairman of the provincial People’s Committee, requested a detailed explanation of the failed bidding process and called for feasible, legally compliant solutions to attract investors going forward.

He asked for the development of a detailed investment plan and investor selection going forward, emphasizing that the project’s investment plan must be feasible and strictly compliant with the law.

According to the management board, the project has struggled to attract investors due to multiple challenges, including complex investment procedures, difficulties in electricity price negotiations and implementation processes under new laws, and, most critically, the lack of a clear mechanism for power purchase agreements (PPAs).

South Korean firm shows interest

The Nghi Son LNG power plant is designed to have a capacity of 1,500 MW and will occupy nearly 68 hectares in Hai Ha commune, the former Nghi Son town.

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

Prior to the tender’s cancellation, five consortiums passed the prequalification stage, including JERA-Sovico (Japan), PV Power-T&T Group, Kogas-Kospo-Daewoo-Anh Phat (South Korea), Gulf Energy (Thailand), and SK E&S (South Korea).

Following the failed tender, Thanh Hoa authorities held talks in September 2025 with SK Innovation Co., Ltd., a subsidiary of South Korea’s SK Group, which expressed interest in developing the project.

Under SK Innovation’s proposal, the plant would retain a 1,500 MW capacity with a total investment of more than VND51.5 trillion ($1.97 billion). The company estimated the project could contribute nearly VND80 trillion ($3.05 billion) to the state budget over its lifecycle. Construction could begin in January 2027, with commercial operations expected by Q4/2030.

SK Innovation also proposed integrating the Nghi Son LNG project with the Quynh Lap LNG power complex in neighboring Nghe An province, rather than developing it as a standalone facility.

Such integration could significantly improve the project’s competitiveness by sharing LNG storage facilities, terminals and breakwaters, potentially cutting investment costs by around $700 million, it said.

However, the integration plan would require revisions to several national and provincial master plans under the Prime Minister’s authority, including the National Energy Master Plan, the national master plan for gas and petroleum infrastructure, and the provincial master plans of Thanh Hoa and Nghe An, likely extending the timeline for investment approval.