GS Energy to build 3GW LNG power plant in Vietnam
GS Energy to build 3GW LNG power plant in Vietnam
GS Energy Corporation, an energy business unit under South Korean conglomerate GS Group, will build a 3GW liquefied natural gas (LNG) power plant in Vietnam, a move that is expected to expedite the Korean energy giant’s push to go global and diversify its business realm.On November 28, GS Energy signed an MoU with VinaCapital Investment to build and operate a 3GW LNG-fired combined cycle power plant in southern Vietnam, which would generate enough power to cover 6 per cent of the country’s total power capacity of 50GW, according to newswire pulsenews.co.kr.
The electricity generated from the plant will be sold to EVN after the two parties sign a power purchase agreement (PPA).
To operate and manage the power plant, GS Energy plans to establish an LNG value chain in Vietnam by introducing LNG and managing storage and vaporisation facilities. An unnamed official from GS Energy expected that Korea’s largest private power producer GS Group would meet the needs of the Vietnamese government that has been actively seeking to ramp up power generation in the country grappling with a chronic power shortage, thanks to the partnership.
Vietnam needs to boost power production to meet the soaring electricity demand in line with the rapid growth in the economy. The Vietnamese government that projects the country would continue to suffer from a power shortage until 2025 has been actively inviting global energy firms to join the country’s power development projects.
In early November, Gulf Energy Development Group from Thailand signed a co-operation agreement with Ninh Thuan People's Committee on researching and proposing investment for the Ca Na LNG gas power project.
Accordingly, Gulf expects to implement the LNG warehouse project and the Ca Na LNG gas complex project with the scale of 6,000MW, including four mixed-cycle gas turbine plants, each with a capacity of 1,500MW. The project has an investment value of $7.8 billion and is expected to be invested under the BOT format.
The project aims to provide natural gas and electricity with modern technology and suitable prices for the Vietnamese market and provide natural gas to the whole region.
