SK Group seeks to develop over $2 bln LNG-fired power project in central Vietnam

SK Innovation of SK Group, South Korea's second-largest chaebol, has submitted a proposal to authorities in Nghe An province regarding the signing of a joint development agreement for a $2.15 billion LNG-fired power project.

The plant will be located in Dong Minh and Dong Thanh villages in Quynh Lap commune, former Hoang Mai township.

Covering about 210 to 360 hectares, it 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.

The project 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.

SK Innovation has recently sent a draft joint development agreement (JDA) to the Nghe An People’s Committee. The move follows its April visit to the locality, during which it outlined plans for an industrial and energy complex there.

In July, a delegation from SK Group held a working session with Nghe An authorities to explore investment opportunities for the Quynh Lap project.

At the meeting, the two sides talked about the construction site, project bidding procedures, and potential shared infrastructure with the Nghi Son LNG-to-power plant in neighboring Thanh Hoa province.

In its proposal, SK Innovation said the sides must complete multiple steps within a tight timeline to meet the target date for commercial operations, stressing that proactive and effective cooperation is essential to keeping the project on schedule.

The company also proposed “exclusive cooperation” with Nghe An, aiming to jointly develop the project to achieve shared goals.

The agreement would establish a framework for collaboration and coordination toward developing a dedicated industrial and energy complex, it said, adding the Nghi Son-Quynh Lap LNG power project is expected to contribute to regional sustainable economic growth and energy security.

SK and Nghe An will jointly develop the Quynh Lap-Nghi Son LNG power project, which includes a 1,500 MW power plant and an LNG terminal in Quynh Lap.

The terminal will serve as shared infrastructure, supplying LNG to both the Quynh Lap plant and an additional 1,500 MW facility to be built in Nghi Son.

The two sides will also support the development of distributed energy sources in Nghe An to power industrial expansion, including AI-related industries in nearby provinces.

The Nghe An People’s Committee has tasked the provincial Department of Finance with reviewing SK Innovation’s proposal.

SK proposes expanding investment in Vietnam

During the August 10-13 state visit to South Korea by Party chief To Lam, Minister of Industry and Trade Nguyen Hong Dien met with SK Innovation CEO Choo Hyeong-wook.

Choo updated the Vietnamese side on the progress and investment plans for LNG power projects in Nghe An and Thanh Hoa, highlighting the group’s strengths and commitment to investing in Vietnam’s LNG sector.

He called on the Vietnamese Ministry of Industry and Trade to continue providing support and favorable conditions for SK to expand its energy investments in the country.

For his part, Dien suggested SK Innovation promptly review, finalize, and submit investment dossiers in accordance with Vietnamese law to accelerate the project rollout.

In April 2025, SK Group proposed to the trade ministry establishment of integrated industrial development hubs in Vietnam, including an AI and innovation center in the north-central region based on the Nghi Son-Quynh Lap LNG project; a hydrogen, logistics, and innovation hub in the south-central region; and an environmentally friendly agriculture center in the Mekong Delta.

The Nghe An Department of Finance has proposed extending the deadline for the Quynh Lap project to fulfill in-principle approval procedures, citing recent changes to legal regulations.

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.

At a meeting with Deputy Prime Minister Nguyen Chi Dung in late May, SK Group chairman Tae-Won Chey noted that SK is a diversified conglomerate operating in sectors such as energy, chemicals, telecommunications, information technology, semiconductors, and materials.

It owns over 200 subsidiaries and has a market capitalization of nearly $200 billion. Last year, the group reported revenue of over $150 billion.

In Vietnam, SK has invested approximately $3.5 billion in various corporations and eco-friendly biodegradable materials projects.