Korea Eximbank to fund $3 bln LNG power complex in southern Vietnam

The Export-Import Bank of Korea (Korea Eximbank) inked Friday a memorandum of understanding to finance a $3 billion plus LNG-to-power project in Long An province, southern Vietnam.

The MoU was signed with Vietnam’s VinaCapital Group and Korea’s GS Energy. The signing took place on the sidelines of the Vietnam-Korea Business Forum held in Hanoi during the three-day state visit by South Korean President Yoon Suk Yeol that ends Saturday.

VinaCapital, one of the largest investment management companies in Vietnam, and GS Energy are co-developers of the 3-gigawatt power complex in Long An province that borders Ho Chi Minh City.

Under the MoU, the three parties will explore potential opportunities for Korea Eximbank to provide credit facilities to the Long An Energy Corporation, which is jointly owned by VinaCapital and GS Energy.

Yoon Hee-seong, CEO of Korea Eximbank, said: “Vietnam is promoting energy conversion from coal power generation to gas power generation, and orders for large-scale projects are expected in the future.

“Since it is a symbolic cooperation project that has obtained business rights from the Vietnamese government, our bank will actively support Korean companies like business owners and engineering procurement and construction contractors to join it,” he said.

VinaCapital CEO and founding partner Don Lam said: “The Long An power plants will play a critical role in producing clean electricity for all of southern Vietnam and fuel the region’s continued economic growth.

“We welcome Korea Eximbank’s potential involvement in this project, which underscores its commitment to sustainable development and strong ties between South Korea and Vietnam.”

GS Energy CEO Huh Yong-soo said, “Korean companies have long understood that investing in Vietnam is mutually beneficial; and GS Energy is proud to be one of the leading foreign investors in Vietnam’s energy sector. We greatly appreciate Korea Eximbank’s support in this endeavour and welcome the participation of other Korean companies in this landmark project.”

The Long An I and Long An II power plants, located in Can Giuoc district, will be fuelled by liquefied natural gas (LNG). When fully operational, the two plants will have a combined generating capacity of up to 3GW, which will be delivered to the national power grid via a power purchase agreement to be signed with state-utility Vietnam Electricity (EVN).

The project, Vietnam’s first approved conversion from a coal-fired plant to an LNG-fired power plant, is included in the country's latest Power Development Plan VIII released last month.