Korean chaebol SK eyes LNG-fired power project in central Vietnam

SK Group, one of the largest South Korean chaebols, is looking to build an ecosystem around an LNG-fired power plant in Phu Yen province, south-central Vietnam.

A delegation from the South Korean chaebol submitted an official project proposal to Phu Yen Chairman Ta Anh Tuan on Wednesday.

They said the proposal marks SK’s commitment to Vietnam beyond the current portfolio of chemicals, oil-gas, green energy, high-tech agriculture and fisheries.

After surveying the province’s Song Cau town, SK felt it was feasible to invest in an LNG-fired power ecosystem and an agriculture-fisheries hub featuring a marketplace and processing center.

Backing SK’s proposal, Phu Yen Chairman Tuan asked relevant agencies to cooperate and facilitate the chaebol’s project-related activities. He also drew the delegation’s attention to Phu Yen’s advantages, including natural conditions for the agriculture-forestry-fisheries sector, especially the abundance of lobsters and tuna.

Phu Yen’s 2021-2030 development plan includes the construction of a deep-water seaport to accommodate massive vessels, he said.

Clean energy, including wind power and solar power, was also an investment priority for Phu Yen, Tuan added.

During Vietnamese PM Pham Minh Chinh’s visit to Australia earlier this month, representatives of the SK Group had expressed interest in deploying new technologies to produce hydrogen and store carbon dioxide in Vietnam.

A chaebol representative had also made a presentation on the carbon-neutral LNG value chain being applied in several countries like South Korea, Australia and Timor Leste.

SK executives also said that while the project chain was being implemented in three countries, it could be applied in Vietnam alone, given the nation’s several advantages.

Also in March, SK ecoplant, part of the chaebol, and BCG Energy, under Vietnamese conglomerate Bamboo Capital Group, signed an agreement to jointly produce 700 MW of renewable energy in Vietnam. The two companies will cooperate to develop 300 MW of onshore wind power, 300 MW of rooftop solar power, and 100 MW of onshore solar power.

Vietnam currently has no LNG-to-power plant in operation. The LNG-fired Nhon Trach 3 and 4 power plants in the southern province of Dong Nai are the only ones under construction in the country. They are expected to become operational soon.