Japan’s Sumitomo eyes LNG power plant in central Vietnam

Sumitomo Corporation is exploring the development of an LNG-to-power plant in Vietnam’s central coastal province of Khanh Hoa, part of its push into the country’s new energy sector.

The interest was conveyed by Shuichiro Ikemoto, a Sumitomo energy executive, at a Thursday meeting with Tran Quoc Nam, Chairman of the Khanh Hoa People’s Committee.

The company is eyeing investment in the Van Phong 2 LNG power plant in Dong Ninh Hoa ward, along with potential offshore wind power projects in the province.

Nam, in reply, welcomed the proposal, citing Khanh Hoa’s priority on attracting investment in the energy sector, especially LNG power projects through 2030.

He affirmed that local authorities would facilitate opportunities for investors, including Sumitomo, to participate in new energy developments.

Sumitomo is already the investor of the $2.58 billion Van Phong 1 BOT coal-fired power plant in Ninh Hoa township, Khanh Hoa.

The 1,320 MW plant, which began commercial operations in January 2024, generated 6.75 million MWh last year and contributed VND1,107 billion ($42.2 million) to the provincial budget. In the first half of 2025, it posted revenue of VND9.24 trillion ($352.3 million) and paid VND506 billion ($19.3 million) in taxes.

In a statement made on May 1, Sumitomo said it will transfer 50% of the Japanese giant’s equity interest in its wholly-owned operator of the Van Phong 1 plant, starting in the fiscal year of 2026 or later.

Following the transfer, Van Phong Power Company Limited (VPCL), established by Sumitomo in 2018, will be reclassified from a consolidated subsidiary to an equity-method affiliate.

Khanh Hoa and Ninh Thuan provinces were recently merged to form the new Khanh Hoa province.