SK Innovation has secured a $2.3 billion liquefied natural gas (LNG) power project in Vietnam, marking a major expansion of its global LNG business. The South Korean refiner announced the significant development on Thursday.
Authorities in Nghe An Province have chosen a consortium led by SK Innovation, alongside Vietnam’s state-run Petrovietnam Power Corporation and local firm Nghe An Sugar, to spearhead the Quynh Lap LNG-to-power project, according to the company.
The project is strategically located in Nghe An, approximately 220 kilometers south of Hanoi. It encompasses the construction of a 1,500-megawatt gas-fired combined cycle power plant, a state-of-the-art LNG terminal with a storage capacity of 250,000 cubic meters, and a dedicated LNG import port.
SK Innovation plans to commence construction of the power plant and the LNG terminal in the coming year, with a targeted completion date of 2030. The company also intends to develop the LNG terminal into a regional hub, supplying gas to nearby power plants, which could enhance efficiency and ensure a reliable energy supply across the region.
SK Innovation emerged as the winner following a rigorous competitive bidding process. Companies from South Korea, Japan, and Qatar successfully passed the initial preliminary review in 2024, culminating in the final selection from a shortlist of candidates last month.
SK Innovation emphasized that this project aligns with a long-term strategy, developed in collaboration with the Vietnamese government over the past four years, to bolster the country’s industrialization efforts while simultaneously achieving its carbon neutrality objectives. The plan involves initially supplying power using LNG, with a gradual transition to carbon-free energy sources over time. This initiative is expected to address Vietnam’s power shortage issues and support its continued industrial growth.
The project is also intrinsically linked to SK Group’s “specialized energy-industry cluster” model. This model integrates energy infrastructure with high-value sectors such as artificial intelligence (AI) data centers and advanced logistics facilities to stimulate regional economic growth and generate employment opportunities.
SK Group Chair Chey Tae-won introduced this concept during a visit to Vietnam last year, where he met with the country’s top leader, To Lam. He outlined plans to seamlessly integrate energy supply with broader industrial development strategies.
Choo Hyeong-wook, CEO of SK Innovation, has also made multiple visits to Vietnam to engage with senior officials, underscoring the company’s capabilities and unwavering commitment to contributing to Vietnam’s economic advancement.
SK Innovation aims to increase its global LNG capacity from approximately 6 million tons to 10 million tons annually by 2030, solidifying its position as a key player in the global LNG market.
“This selection underscores the globally recognized competitiveness of SK’s LNG value chain,” stated a company official. “We are committed to working closely with Nghe An province to help alleviate Vietnam’s power shortages and contribute to the region’s economic development.”
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