S Korea's SK Group keen on LNG power project in central Vietnam province Ninh Thuan

SK Group is eyeing to develop an LNG-fired power plant in Ninh Thuan province, home to Vietnam's future nuclear power plants, following its similar proposals in Nghe An and Thanh Hoa, all in central Vietnam.

Ninh Thuan authorities on Wednesday had a meeting with SK where the group presented its investment proposal.

In Ninh Thuan, SK Group proposed building a 1.5 GW LNG power plant and a 240,000 m3 LNG storage facility in Ca Na commune, Thuan Nam district, with a total investment of $2.35 billion.

The group, however, noted that it wants to move the LNG storage facility to the mainland to raise the LNG power plant's capacity to 3 GW and the LNG storage facility to 270 m3, bringing the total investment to $4 billion.

It is expected that the Government will approve the project's investor in September 2025, and the LNG storage facility and the LNG power plant are scheduled to be put into operation by 2030.

When the project is completed, Ca Na will not only be a gas power center but also a logistics center for the entire region.

In response, Ninh Thuan's Deputy Party chief and Chairman Tran Quoc Nam said that Ninh Thuan and Khanh Hoa provinces are about to merge with each other, opening up development space.

With many advantages, Ninh Thuan has formed a national renewable energy center, with over 3,700 MW already connected to the national grid.

The Government will allow Ninh Thuan to develop an additional over 3,000 MW of wind and solar power for the period of 2025-2030. In addition, two nuclear power plants - Ninh Thuan 1 and 2, are expected to be completed in 2031, according to Nam.

Nam said he highly appreciates the determination of SK Group to invest in the Ca Na LNG industrial cluster, with detailed surveys and investment proposals made in a "very scientific and professional way".

Ninh Thuan's People's Committee and other state agencies were required to proactively coordinate with SK Group to complete procedures and documents for the project.

Provincial leaders will work with the central government on SK Group's proposal to move the proposed LNG storage facility to the mainland to save on site clearance costs and increase the LNG-fired power plant's capacity to 3 GW.

Nam added that he believes the Ca Na LNG project will become a bright spot in the economic picture of the southern part of Ninh Thuan, marking a new milestone in the investment cooperation relationship between South Korea and Vietnam.

Previously, SK Group had shown interest in developing LNG-fired power projects in Nghe An and Thanh Hoa.

At an April 18 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. The group also eyes an LNG power project in Thanh Hoa province.

In Thanh Hoa, 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.

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.