SK Group’s Strategic LNG Investment Plans in Vietnam: A Vision for Sustainable Energy Transformation

SK Group, South Korea’s second-largest conglomerate, has unveiled an ambitious plan to invest over $10 billion in liquefied natural gas (LNG) infrastructure across Vietnam. This initiative underscores SK Group’s commitment to supporting Vietnam’s transition to a greener energy future and enhancing its energy security.

Strategic LNG Projects

The proposed investments encompass the development of three Special Energy-Industrial Clusters (SEICs), each integrating LNG power generation with advanced technologies such as artificial intelligence (AI), hydrogen energy, and logistics.

1. North Central AI Energy-Industrial Complex (Nghi Son–Quynh Lap)

The centerpiece of SK Group’s LNG investments is the Nghi Son–Quynh Lap LNG Power Project, located in the North Central region. This project involves the construction of two LNG-fired power plants, each with a capacity of 1,500 MW, totaling 3,000 MW. A shared onshore LNG terminal in Quynh Lap will support both plants, with a storage capacity of up to 2.4 million tonnes per year. The project aims to establish a high-tech industrial and energy hub, integrating AI and innovation centers to foster regional economic development.

2. South Central E-Logistics SEIC (Ca Na, Ninh Thuan)

In the South Central region, SK Group proposes the development of a 1.5 GW LNG power plant and a 240,000 m³ LNG storage facility in Ca Na commune, Thuan Nam district, Ninh Thuan province. The total investment for this project is estimated at $2.35 billion. Plans are underway to relocate the LNG storage facility to the mainland, which would increase the plant’s capacity to 3 GW and the storage facility to 270,000 m³, bringing the total investment to $4 billion. The project is expected to commence operations by 2030.

3. Mekong Delta Energy-Agriculture SEIC (Ca Mau)

The Mekong Delta SEIC focuses on integrating LNG power generation with sustainable agriculture. While specific project details are still under development, the initiative aims to enhance energy access in the region while promoting eco-friendly agricultural practices. This approach aligns with Vietnam’s broader goals of sustainable development and rural economic growth.

Coal-to-Gas Conversion Projects

In addition to new LNG power plants, SK Group is exploring opportunities to convert existing coal-fired power plants to LNG. One such project is the Quang Tri I power plant, originally planned as a 1,320 MW coal-fired facility. The consortium, comprising T&T Group and SK E&S, proposes to convert this plant to LNG, aiming for a 2030 operational date. The conversion aligns with Vietnam’s Power Development Plan VIII (PDP8), which supports the transition from coal to cleaner energy sources.

Integration with Advanced Technologies

SK Group’s LNG projects are designed to serve as integrated energy hubs, incorporating advanced technologies to enhance efficiency and sustainability. These hubs will feature AI-ready data centers, hydrogen production facilities, and small modular reactors (SMRs). The integration of these technologies aims to create a cohesive energy ecosystem that supports Vietnam’s digital transformation and green energy objectives.

Policy Support and Strategic Alignment

Vietnam’s government has demonstrated strong support for SK Group’s LNG initiatives. In meetings with Prime Minister Pham Minh Chinh and Party General Secretary To Lam, SK Group’s chairman, Chey Tae-won, emphasized the potential of LNG projects to contribute to Vietnam’s energy security, economic development, and environmental goals. The Vietnamese leadership has encouraged SK Group to collaborate closely with local authorities and agencies to expedite project implementation.

Source: various sources