Central Vietnam province Thanh Hoa seeks investor again for $2.2 bln LNG power project

Vietnam’s central province of Thanh Hoa has launched a third tender to seek an investor for its $2.2 billion Nghi Son LNG-fired power plant.

The Nghi Son Economic Zone Management Board said the tender has been issued in the first quarter of 2026 after two previous bidding rounds failed to attract a qualified investor.

The project is listed among priority power sources under Vietnam’s adjusted Power Development Plan VIII and is scheduled for completion in the 2025-2030 period.

Provincial authorities granted in-principle approval for the project in March 2024 and launched the first tender in July that year. A second bidding round in April 2025 also failed, prompting authorities to cancel the tender.

Officials said the lack of investor interest stemmed from several hurdles, including complex investment procedures, unresolved negotiations over electricity pricing, implementation requirements under the amended Bidding Law, and the absence of a clear framework for power purchase agreements (PPAs) – a critical factor for investors assessing project bankability.

Following the cancellation, the management board reported to the provincial government and proposed selecting an investor under a “special-case” mechanism allowed by law.

At a recent meeting, Thanh Hoa Chairman Nguyen Hoai Anh asked for a detailed and feasible investment plan that strictly complies with legal requirements, according to a statement from the province.

Strong interest from major energy groups

Before the second tender was cancelled, the project had drawn interest from five investors, including major domestic and foreign energy groups such as a Sovico-Jera (Japan) consortium; a PV Power-T&T Group consortium; a consortium comprising Kospo, Kogas, Daewoo and Anh Phat; Gulf Energy (Thailand); and SK Innovation (South Korea).

After the tender was cancelled, Thanh Hoa authorities held talks in September 2025 with SK Innovation, a member of South Korea’s SK Group, over a renewed investment proposal.

Under SK Innovation’s proposal, the plant would have a capacity of 1,500 MW, total investment exceeding VND51.5 trillion ($1.98 billion), break ground in January 2027, and begin commercial operations in Q4/2030. The company estimates the project could contribute nearly VND80 trillion ($3.08 billion) to the state budget over its lifetime.

SK Innovation also proposed integrating infrastructure with the Quynh Lap LNG power complex in neighbouring Nghe An, allowing the projects to share LNG storage, port facilities, and breakwaters. The plan could cut investment costs by about $700 million while improving overall financial viability, the company said.

The Korean firm has urged Thanh Hoa to streamline administrative procedures, accelerate investor selection under the special-case mechanism, and coordinate with Nghe An province authorities to report to the central government on issues related to land use, port space, and border-area planning.

The Nghi Son LNG power plant is planned in Nghi Son ward on an area of about 68.2 hectares. The project will use combined-cycle gas turbine technology with a capacity of 1,500 MW, alongside an LNG import terminal, a roughly 1 km breakwater, LNG storage tanks with a capacity of about 230,000 cubic metres, regasification facilities of 1.2 million tons per year, gas pipelines, a 500-kilovolt transmission system, and related auxiliary infrastructure.

Thanh Hoa is home to the Nghi Son Refinery and Petrochemical LLC. Prime Minister Pham Minh Chinh in Novemberr last year called on Kuwait Petroleum Corporation (KPC) to expand the Nghi Son oil refinery and build a bonded fuel storage facility in Vietnam.

The cabinet leader made the suggestion at a meeting with Shaikh Nawaf S. Al-Sabah, deputy chairman and CEO of KPC, during his official visit to Kuwait. KPC is the national oil company of the State of Kuwait.

Nghe An province authorities recently granted in-principle approval for the Quynh Lap LNG-to-power project and selected a consortium led by PV Power, alongside Nghe An Sugar Co., Ltd and South Korea’s SK Innovation Co., Ltd., as the investor.