Principle agreement signed for 4,500 MW LNG power project in central Vietnam

Cong Thanh Thermal Power JSC and a consortium of South Korea’s Doosan Enerbility and Vietnam’s Power Engineering Consulting JSC 2 (PECC2) on Tuesday signed a principle agreement on the implementation of the 4,500 MW Cong Thanh LNG-fueled power plant project in the central province of Thanh Hoa.

Doosan and PECC2 – both of whom have participated in major power projects such as Vinh Tan, Vinh Tan 4 Expansion, and O Mon 4 – will contribute their EPC, consulting, and technological expertise to the project.

Initially, the Cong Thanh thermal power project broke ground in 2011 with a coal-fired capacity of 600 MW and an initial investment of approximately $1.2 billion. According to the original plan, its two turbines were scheduled to go into operation in 2014.

However, after more than a decade, the project remains incomplete, with only the gate, fencing, and land leveling finished, while the nearly 200-hectare site remains unused. The delays are primarily due to changes in the structure of shareholders, difficulties in securing financing, and policy-related barriers concerning coal-fired power.

In this context, the investor - Cong Thanh Thermal Power JSC – has proposed switching to imported LNG as fuel and expanding the capacity to 4,500 MW.

Phase 1 will have a capacity of 1,500 MW, and phase 2 will add 3,000 MW, utilizing combined-cycle gas turbine (CCGT) technology, in line with the government's orientation toward clean energy development and gradual reduction of coal-fired power.

The total investment for phase 1 is estimated at around VND47 trillion ($1.78 billion), with the site expanding to 197.3 hectares, including the main power plant, LNG storage facilities and terminals, gas pipelines, and cooling systems.

Once operational, the plant is expected to supply approximately 9 billion kWh of electricity annually, contributing significantly to the power supply for northern Vietnam and high-load areas.

The project has been included in the Adjusted Power Development Plan VIII (PDP8), with a potential commissioning timeframe between 2026-2030 or possibly delayed to 2031-2035, depending on the progress of the national power system.

A key current challenge is the plan for connections to the national power grid. Options under consideration include connections to the 500kV substations in Hung Yen, South Hanoi, or Long Bien in eastern Hanoi, with the final choice impacting both the timeline and the plant’s power capacity.

In parallel with construction of the plant, the project also requires synchronous development of LNG storage systems and terminals, gas pipelines, and logistics facilities - components that involve high costs, complex technical requirements, and are directly affected by global LNG price volatility.

Additionally, securing finances from international institutions is a major challenge, as the project needs long-term foreign currency funding and credit guarantee commitments.

Notably, SK Group of South Korea has expressed interest in the Cong Thanh LNG project. With a market capitalization of nearly $200 billion and existing investment experience in Vietnam, SK is studying the development of an LNG industrial value chain connected to industrial hubs in Thanh Hoa, Nghe An, Khanh Hoa, and Ca Mau provinces.

In April 2025, SK representatives met with Vietnam’s Ministry of Industry and Trade, demonstrating their desire to play a greater role in LNG projects in central and northern Vietnam.