Korea giants KEPCO, KOGAS eye Petrovietnam ties in LNG projects

Korean giants Korea Electric Power Corporation (KEPCO) and Korea Gas Corporation (KOGAS) are seeking to cooperate with state-run Petrovietnam in developing LNG terminals, LNG-to-power projects, and fuel supply.

In a meeting with Petrovietnam’s deputy general director Le Xuan Huyen on Monday, executives of both companies expressed their interest in expanding cooperation with the Vietnamese group and its subsidiaries like PVOil, PV Gas, and PV Power in the above-mentioned fields.

Huyen said Petrovietnam (PVN) is actively implementing many projects, especially in oil exploration, exploitation and processing, and electricity, including renewables. "We welcome Korean companies to partner with PVN and its members in the projects."

He added that Korean giants like KNOC, LG, SK/SKI/SK E&C, Hyundai, Samsung C&T, GS E&C, POSCO Engineering, Daelim, and Doosan are cooperating with PVN in diverse fields, from upstream to downstream business, in technical oil and gas services, finance, and the partnerships are bringing "good benefits to all parties".

Min Moonki, a representative from the South Korean embassy in Hanoi, told the meeting with Huyen that the embassy wishes to see continued support for Korean companies from Petrovietnam in energy projects in Vietnam.

Up to now, no LNG-to-power plants operate in Vietnam. Prime Minister Pham Minh Chinh in mid-June ordered the Ministry of Industry and Trade to recalculate the ratio of liquified natural gas (LNG) power in the country’s energy mix under the draft power development plan VIII (PDP VIII) as the soaring price of imported LNG might make LNG-to-power plant projects until 2030 unbankable.

American corporation AES and PV Gas in May this year secured an investment certificate for their $1.4 billion Son My LNG terminal project in Binh Thuan province, south-central Vietnam. It is expected to achieve financial completion in 2023 and begin commercial operations by 2026. The terminal will receive, process and supply LNG reprocessed as fuel for Son My 1 and Son My 2 power plants.

PV Power on March 14 awarded a $940 million contract to build Nhon Trach 3 and 4, Vietnam's first LNG-fueled power plants, to a consortium of Samsung C&T Corp and Lilama Corp, a leading Vietnamese construction company.

With a total capacity of 1,500 megawatts and capitalized at $1.4 billion, Nhon Trach 3 and 4, located in Nhon Trach district, Dong Nai province are important national projects under the PDP VIII. The government has assigned PV Power as investor.