Work begins on $2.25 bln LNG power project in central Vietnam

A consortium consisting PV Power - a subsidiary of state-owned Petrovietnam, Nghe An Sugar Co. Ltd. and South Korea’s SK Innovation has broken ground on the $2.25 billion Quynh Lap LNG-fired power project, located in Nghe An province, central Vietnam.

The groundbreaking ceremony for technical infrastructure of the 1,500 MW power project was held on Monday, coinciding with celebrations marking the 136th anniversary of the birth of late President Ho Chi Minh. Nghe An was hometown of the late president.

Earlier in February 2026, the provincial People’s Committee had granted in-principle approval and selected investors for the project.

The project aims to generate electricity using liquefied natural gas (LNG), while also including LNG storage and related energy infrastructure in line with Vietnam’s national power development plan.

Located in Tan Mai ward, the project covers more than 152.8 hectares, including 57.2 hectares of land area and around 95.5 hectares of coastal and offshore surface area.

It will have total installed capacity of 1,500 megawatts, consisting of two combined-cycle gas turbine units with capacity of 750 MW each.

The project will also include an LNG storage facility with capacity of around 250,000 cubic meters, a regasification system and a dedicated port capable of receiving LNG vessels of up to 150,000 tons. Annual LNG import demand is estimated at roughly 1.15 million tons.

Total investment capital is estimated at over VND59.37 trillion ($2.25 billion), including more than VND14.84 trillion in investor equity and nearly VND44.53 trillion in mobilized capital.

It is expected to be completed and enter operation during the 2025-2030 period, supplying stable electricity to Vietnam’s national grid and supporting rising power demand, while also contributing to industrial development and economic growth in Nghe An province.

Nghe An People’s Committee Chairman Vo Trong Hai said the decision by investors to develop a large-scale, technologically advanced project in the province reflected growing confidence in Nghe An's increasingly transparent and business-friendly investment environment.

He added that the project underscored the province’s rising importance in regional connectivity and economic development across north-central Vietnam.

Once operational, the LNG power plant is expected to generate annual budget revenues of between VND6-7 trillion ($265.58 million), potentially becoming one of Nghe An’s largest revenue sources.