SK Innovation has been selected as the operator for a liquefied natural gas (LNG) power generation project in Vietnam with a total project cost of about $2.3 billion (about 3.3 trillion won).
On the 19th, SK Innovation said the consortium it formed with PV Power, a power generation company under Vietnam Oil and Gas Group (PVN), and Vietnam corporations NASU was selected by the Nghe An provincial government as the operator of the "Quynh Lap LNG power project."
The project is a large-scale infrastructure build that will simultaneously construct a 1,500-megawatt (MW) gas combined-cycle power plant, a 250,000-cubic-meter LNG terminal, and a dedicated port in Quynh Lap, Nghe An province, 220 kilometers south of Hanoi. SK Innovation will join the project through a consortium with PV Power, a state-owned power company in Vietnam, and NASU. After breaking ground in 2027, the goal is to complete the terminal and power plant in 2030.
By collaborating with partners who have a strong understanding of the local power generation business, the project is expected to secure stability, while adding SK's experience in operating LNG power projects and its global LNG value chain capabilities, including gas fields it directly owns in North America and Australia, to deliver optimal results.
In the initial 2024 tender for the Quynh Lap LNG power project, leading global corporations from Korea, Japan, and Qatar participated and passed the preliminary review, and in Jan. this year, the operator selection process was carried out for those that passed the review.
SK Innovation is also considering expanding operations to make the Quynh Lap LNG terminal a hub terminal that supplies gas to nearby power plants after its construction. SK Innovation also expects benefits such as improved project efficiency, shorter project timelines, and timely energy supply by leveraging the hub terminal. The plan aligns with Vietnam's power development plans, which focus on integrating energy infrastructure and fostering regional industrial growth.
An SK Innovation official said, "This operator selection is a milestone that proves SK's unrivaled LNG value chain competitiveness works in the global market," adding, "We will work with the Nghe An provincial government to achieve both easing Vietnam's power shortages and advancing the regional economy."