Korean chaebol SK okayed to study investment in central Vietnam LNG-to-power plant

Quang Tri's Department of Planning and Investment has agreed to let a South Korea-Vietnam joint venture study the feasibility of an LNG-fired thermal plant project in the central province.

The department said it has received a project proposal for the plant from the joint venture, formed by SK E&S and Vietnamese conglomerate T&T Group.

However, Quang Tri authorities will have to adjust the provincial master plan to include the new plant and get the project included in the national power development plan VIII (PDP 8) for final project approval.

The department has recommended that an in-principle approval can be granted to the joint venture, after provincial authorities completes scrapping the memorandum of understanding signed by them and the previous investor, in July.

The predecessor of the LNG-fired thermal plant is the $2.3 billion, 1,320-MW Quang Tri I coal-fired power plant. It was to be built and operated by EGAT International (EGATi), a wholly-owned subsidiary of the Electricity Generating Authority of Thailand.

Construction of the project began in November 2019, but little progress has been made since, amidst the trend of renewable energy and emission reduction. In September-October 2023, EGATi signed documents with Vietnam’s Ministry of Industry and Trade and Quang Tri authorities for terminating the project.

Quang Tri is home to another 1,500 MW LNG-to-power project, the Hai Lang LNG Power Complex, which also has T&T Group as a co-investor. The other investors are the Korea Gas Corporation (KOGAS), Korea Southern Power (KOSPO), and Hanwha, also from South Korea. Construction of the project started in January 2022. It is set to enter commercial operation in 2026-2027.

Vietnam currently has no LNG-fired power plant in operation. The Nhon Trach 3 and Nhon Trach 4 plants in Dong Nai province, a southern industrial hub, are under construction. Contracts are being negotiated for other projects.