Central Vietnam province approves investor for $2.3 bln LNG power project

Nghe An authorities have granted in-principle approval for the Quynh Lap LNG-to-power project and selected a consortium led by PV Power, alongside Nghe An Sugar Co., Ltd and South Korea’s SK Innovation Co., Ltd., as the investor.

Under a provincial People’s Committee decision, the project aims to generate electricity from LNG, develop LNG storage, and carry out other activities in line with Vietnam’s national power development plan and related plans.

Located in Tan Mai ward in Nghe An, it will cover a combined land and sea area of about 152.8 hectares, of which the land area covers more than 57 hectares.

The consortium will build a 1,500 MW power plant comprising two 750 MW combined-cycle gas turbine units.

The project also includes an LNG storage facility with a capacity of about 250,000 cubic meters, regasification systems and a dedicated terminal capable of handling LNG carriers of up to 150,000 tons. The plant is expected to import around 1.15 million tons of LNG annually.

Total investment for the project is estimated at over VND59.37 trillion ($2.29 billion), of which investors’ equity will account for more than VND14.84 trillion ($571.55 million), with the remainder to be raised through financing.

Construction and commissioning are scheduled for 2025-2030. Once operational, the plant is expected to provide a stable power supply to Vietnam’s national grid, meet rising electricity demand, and support the industrial development and economic growth in Nghe An.

The designated location of Quynh Lap LNG-fired power plant project in Nghe An province, central Vietnam.

SK Innovation is South Korea’s second-largest conglomerate and ranks among the world’s top 100 companies. In 2024, it reported a market capitalization of about $270 billion and revenue of $150 billion. Its core businesses span green energy, semiconductors and advanced materials, information technology, and biotechnology.

In LNG power generation, SK Innovation is South Korea’s largest private electricity producer, operating plants with nearly 5 GW of total capacity. The group has posted operating profits of more than $715 million for three consecutive years and has built a closed-loop LNG value chain by importing over 5 million tons of LNG annually.

SK has invested more than $3.5 billion in Vietnam, mainly through equity stakes in major companies, although it has gradually divested some of those holdings, leaving current investment of around $650 million.

Previously, SK proposed integrating two LNG power plants in Quynh Lap (Nghe An) and Nghi Son (Thanh Hoa province) to share LNG storage, terminal infrastructure, and power transmission facilities. The South Korean group also suggested using a special investor selection mechanism in line with Vietnam’s bidding regulations.

Petrovietnam Power Corporation, or PV Power, is a subsidiary of state-owned Petrovietnam.