SK Group pushes for potential investment in $2.2 bln LNG-fired power plant in central Vietnam

A delegation from South Korean chaebol SK Group has held a second round of talks with Nghe An province authorities to explore investment opportunities for a $2.2 billion LNG-fuelled power plant project.

The latest working session, which follows initial discussions in April, focused on the proposed Quynh Lap LNG power plant.

Both sides talked about its construction site in Tan Mai district, project bidding procedures, and potential shared infrastructure with the Nghi Son LNG-to-power plant in neighboring Thanh Hoa province.

Vice Chairman of the Nghe An People’s Committee, Phung Thanh Vinh, expressed strong support for SK Group’s involvement and pledged favorable conditions to facilitate investment.

The provincial government noted that project investor selection may proceed via public bidding under Vietnam’s Bidding Law, or through direct appointment if the project is classified as urgent under the country’s amended Electricity Law 2024.

The Quynh Lap LNG power plant is designed to have a capacity of 1,500 MW and will require approximately 1.15 million tons of LNG annually. The facility is set to begin commercial operations before 2030, as part of Vietnam’s broader energy transition strategy.

Quynh Lap was included in the national power development plan VIII (PDP VIII) as a prioritized project. It will comprise an LNG-fired power plant, a gas storage facility, an LNG terminal capable of receiving ships of approximately 100,000 DWT, and a dyke.

In October 2024, Nghe An received dossiers from five investors proposing to develop the Quynh Lap LNG-to-power project.

They include a consortium of PV Power, Nghe An Sugar LLC, and SK E&S Co., Ltd; Power Generation Corporation 1 (EVNGENCO 1); South Korea’s Posco International and Trung Nam Construction Investment JSC; Japan’s Sumitomo Corporation; a consortium comprising Viet Thanh Bamboo Energy Investment JSC and Qatar’s Gulf Petroleum Limited.