On February 20, SK Innovation announced that the consortium, including Petrovietnam Power Corporation – a subsidiary of state-owned PetroVietnam – and Vietnamese firm NASU, had been designated as project developer by the Nghe An People's Committee. The $2.3 billion facility will be located in the north-central province, strengthening Vietnam's energy infrastructure and marking a key milestone in the South Korean company's global expansion strategy.

The complex comprises a 1,500MW combined-cycle gas power plant, a 250,000 cubic metre LNG terminal, and a dedicated port in the Quynh Lap region, approximately 220km south of Hanoi. Construction is scheduled to begin in 2027 and be completed by 2030.

SK Innovation’s participation brings together its proven expertise in LNG power generation and its global value chain, complementing the local strengths of its Vietnamese partners. This collaborative approach is expected to deliver optimal synergy and contribute to the region’s long-term energy and industrial development.

The Quynh Lap LNG Power Project had attracted interest from leading global companies, with participants from South Korea, Japan, and Qatar advancing through the initial bidding and preliminary evaluation in 2024. The final developer selection was conducted among these shortlisted firms in January.

SK Innovation is also considering expanding the LNG terminal into a regional hub, supplying gas to nearby power plants. This approach is expected to enhance project efficiency, ensure timely energy supply, and support the integrated growth of energy infrastructure and industry, in line with Vietnam’s national development plans.

Over the past four years, SK Innovation has collaborated closely with the Vietnamese government to establish a long-term roadmap supporting both industrial advancement and carbon neutrality. Central to this vision is the Specialised Energy-Industry Cluster (SEIC) model, which leverages stable LNG power generation as a foundation for regional growth and sustainable development.

The SEIC model is designed to foster high-value industries near the power plant, such as AI data centres and logistics hubs, contributing to job creation, talent development, and overall economic vitality. SK Innovation’s phased approach, using LNG for immediate energy needs while preparing for future zero-carbon power sources, underscores its commitment to shared prosperity.

SK Group Chairman Chey Tae-won and SK Innovation leadership have held a series of discussions with Vietnamese government officials to align the SEIC model with the country's energy policies and development priorities. The company's commitment to this collaborative framework was reinforced through high-level meetings in 2025. Through the SEIC initiative, SK Group has underscored its dedication to supporting Vietnam's industrial and economic advancement while fostering mutual growth with local partners.

The project represents the first overseas application of SK Innovation's integrated value chain, a model already proven in South Korea's private sector. In contrast to conventional approaches that focus solely on power plant construction or LNG trading, SK Innovation has proposed a business model leveraging its global portfolio to transport LNG directly to Vietnam's terminal for use as fuel. This integrated approach enhances fuel supply stability while enabling flexible responses to global market fluctuations, strengthening energy security for the region.

SK Innovation plans to grow its global LNG portfolio to 10 million tonnes by 2030, advancing its ambitions for international energy leadership.

An SK Innovation spokesperson said, “This project demonstrates the strength of international collaboration and the competitiveness of SK’s integrated LNG value chain. By working closely with Nghe An authorities and our partners, we look forward to contributing to Vietnam’s energy development and regional prosperity.”

By Thanh Van

Source: VIR

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