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

SK Group has shown interest in developing LNG-fired power projects in Vietnam, particularly in the central provinces of Nghe An and Thanh Hoa.

At a Friday meeting with Vietnamese Minister of Industry and Trade Nguyen Hong Dien in Hanoi, an SK representative stated that the group affirms its long-term commitment to investing in high-tech industries, renewable energy, and environmentally friendly sectors in Vietnam.

In Nghe An province, SK has showed its interest in bidding for the $2.1 billion Quynh Lap LNG-fueled power project in Hoang Mai township.

In Thanh Hoa province, according to the revised Power Development Plan VIII (PDP VIII), there is one LNG-to-power project - the LNG Cong Thanh - scheduled to begin operations during the 2031-2035 period. However, the timeline could be accelerated to 2026-2030, depending on the national power system's demand.

Originally, this was a coal-fired power project. In May 2024, the Ministry of Industry and Trade proposed to the Prime Minister a plan to convert the project’s fuel source from coal to LNG.

If the conversion is approved early, Cong Thanh LNG will use imported LNG, with an estimated annual consumption of 1.2-1.5 million tons. After the fuel switch, the plant’s capacity is expected to increase from 600 MW to 1,500 MW, while its average annual electricity output to the grid would rise from 3.9 billion kWh to 9 billion kWh.

The project’s total investment would climb from $1.2 billion to $2 billion. Once operational, it could help ease supply pressures and address electricity shortages in northern Vietnam.

Also at the meeting with Minister Dien, SK Group proposed developing integrated industrial hubs across Vietnam, including an artificial intelligence and innovation center in the north-central region, linked to the Nghi Son-Quynh Lap LNG project; a hydrogen, logistics, and innovation center in the south-central region, associated with the Ca Na LNG project; and an environmentally friendly agricultural center in the Mekong Delta, tied to the Ca Mau LNG project.

SK is a diversified conglomerate operating across multiple sectors, including chemicals, telecommunications, oil and gas, and energy. With a market capitalization nearing $200 billion, it is the second-largest group in South Korea and among the top 100 largest conglomerates worldwide.

By mid-February this year, SK had invested $3.5 billion in Vietnam, including top Vietnamese businesses Vingroup, Masan, Imexpharm, and a $500-million biodegradable plastic factory.

The group is expanding its investments in its key areas of strength, including clean energy such as LNG, wind and solar power; hydrogen; pharmaceuticals and health care; logistics; and information technology.