Posco keen on investing in Vietnam's $2.2 bln LNG power project

South Korea’s steelmaker Posco is eyeing to invest in the $2.2 billion Quynh Lap LNG-fired power plant project in Vietnam’s central province of Nghe An.

A delegation of Posco International, led by managing director Kim Dae Yeon, made the statement at a Wednesday meeting with Vietnamese Deputy Minister of Industry and Trade Nguyen Hoang Long.

Posco said it has gained experience from operating Mong Duong II coal-fired power plant and is willing to help Vietnam’s energy sector.

Backing the proposal, Deputy Minister Long said the ministry would facilitate the operation of South Korean businesses on the basis of a “fair share of risks and benefits.” He also asked Posco to study bidding regulations in Vietnam to proceed with the plan.

Posco earned a profit of KRW17.84 billion ($12.8 million) in the first half of this year from AES Mong Duong Power Company Limited, the operator of the $2.1 bln Mong Duong II coal-fired power plant in the northern province of Quang Ninh. The South Korean materials and steel conglomerate holds a 30% stake in AES Mong Duong.

The 1,500-MW Quynh Lap LNG-to-power plant has been included in the national power development plan VIII (PDP VIII) as a prioritized project. The facility will comprise an LNG-fired power plant, a gas terminal, a dyke and a receiving terminal.

It will have an LNG input of about 1.15 million tons a year and a port to receive ships of about 100,000 DWT. It is expected to begin commercial operations before 2030.

The Quynh Lap project was initially planned as a thermal power plant spanning 283 hectares in Quynh Luu district. In the previous national power plan, PDP VII, the project had two factories, Quynh Lap I and Quynh Lap II, with a total capacity of 2,400 MW.

So far, five investors have applied to join the $2.2 billion Quynh Lap LNG-fired power plant project, according to the provincial Department of Planning and Investment.