S Korean investor plans 2028 opening for two LNG-to-power plants in Vietnam

South Korea’s GS Energy, a co-investor in two 1,500 MW LNG-to-power plants in the Mekong Delta province of Long An, plans to put them into operation in 2028.

Revealing this in talks held Tuesday with Vietnam Electricity (EVN) chairman Dang Hoang An, GS Energy general director Kim Sung Won also requested the utility’s help in implementing and operating the Long An 1 and Long An 2 plants.

An said EVN fully supports the development of power projects in Vietnam and urged GS Energy to use capable contractors and deploy the projects on schedule.

The two projects, with a total investment of $3 billion, received their investment certificates in March 2021. Initially, planned as coal-fired plants, the fuel source was changed to LNG with the approval of former Prime Minister Nguyen Xuan Phuc. Both are part of Vietnam’s latest national power development plan VIII (PDP VIII).

In June, the Export-Import Bank of Korea (Korea Eximbank) inked a memorandum of understanding (MoU) on financing the two projects. The MoU was signed with Vietnam’s VinaCapital Group and GS Energy. The signing took place on the sidelines of the Vietnam-Korea Business Forum held in Hanoi during a three-day state visit by South Korean President Yoon Suk Yeol.

Per the MoU, the three parties will explore potential opportunities for Korea Eximbank to provide credit facilities to Long An Energy Corporation, jointly owned by VinaCapital and GS Energy.

Vietnam currently has no operational LNG power plant. PV Power’s Nhon Trach 3 and 4 power plants, with a combined capacity of 1.6 GW, will be the nation’s first LNG-to-power projects. They are currently under construction in the southern province of Dong Nai near Ho Chi Minh City.

The list of priority LNG projects for development by 2035 in the (PDP VIII) includes: Thai Binh (1,500 MW); Quang Ninh (1,500 MW); Nghi Son (1,500 MW); Quang Trach II (1,500 MW); Quynh Lap/Nghi Son (1,500 MW); Hai Lang Phase 1 (1,500 MW); Ca Na (1,500 MW); Long Son (1,500 MW); Hiep Phuoc Phase 1 (1,200 MW); Long An I (1,500 MW); Long An II (1,500 MW); and Bac Lieu (3,200 MW).