SK Group proposes $10 billion in LNG investments across Vietnam

SK Group proposes $10 billion in LNG investments across Vietnam

South Korea’s SK Group has proposed over $10 billion in power infrastructure projects across Vietnam, aiming to transform the country into a regional energy and logistics powerhouse.

Deputy Prime Minister Nguyen Chi Dung met with SK Group’s chairman Tae-Won Chey on the sidelines of the Future of Asia Conference on May 25 in Tokyo.

During the meeting, chairman Chey provided detailed updates on SK’s proposed investment plans. The group is exploring the development of three special energy-industrial clusters (SEICs), the core being liquefied natural gas (LNG) projects. SK aims to roll out a comprehensive energy solution package across Vietnam.

Nhơn Trach 3&4 is the first LNG-fired power plant in Vietnam

The three SEICs would include the North Central AI Energy-Industrial Complex in Nghe An and Thanh Hoa; the South Central ‘E-Logistics’ SEIC in Ninh Thuan; and the Mekong Delta Energy-Agriculture SEIC.

For the North Central AI SEIC, SK envisions transforming the area into a high-tech industrial and energy hub. The centrepiece would be the integrated Nghi Son- Quynh Lap LNG Power Project with an estimated total investment of $4.1 billion.

The venture comprises two LNG power plants, each with a capacity of 1,500MW, located in Nghi Son and Quynh Lap, respectively. A shared onshore LNG terminal in Quynh Lap would support both plants, with a storage capacity of up to 2.4 million tonnes per year.

Supporting infrastructure would include an LNG import port, breakwaters, and auxiliary facilities necessary for LNG import operations. The total land requirement is estimated at 424ha, with 88.6ha onshore and 335ha offshore.

Looking ahead, SK also proposes the construction of a third 1,500MW LNG power plant in Thanh Hoa. The power generated from these projects would support the development of a 10,000sq.m AI data centre near Nghi Son power plant.

In addition, the company plans to implement a distributed energy resource (DER) system in Thanh Hoa to integrate renewable energy sources and energy storage systems, ensuring a stable and efficient electricity supply.

In Ninh Thuan province, SK’s proposal includes the development of the 1,500MW LNG-fuelled Ca Na Power Plant and a 240,000cub.m LNG terminal, along with related technical infrastructure.

The estimated investment for this phase is around $2.4 billion, requiring approximately 143ha of land and 232ha of sea area.

In the long term, SK plans to build another 1,500MW LNG power plant in Ca Na, increasing the total investment in the province to approximately $4 billion.

The company also envisions Ninh Thuan as a future LNG logistics hub focusing on three key areas: LNG refuelling services; cold-chain logistics for agriculture and seafood leveraging LNG’s cryogenic properties; and overland transportation of natural gas via truck.

Furthermore, SK has plans to explore the deployment of small modular reactors in Ninh Thuan to support nuclear power development.

A DER system is also expected to be developed in the province, helping complement the broader energy strategy for the region.

In the Mekong Delta Energy-Agriculture SEIC, SK proposes to leverage the region’s agricultural strengths while ensuring energy security for future growth.

Key projects include the 1,500MW Ca Mau 3 LNG power plant to be located at Khanh An Industrial Park, close to the existing Ca Mau 1 and Ca Mau 2 power plants, and a floating storage and regasification unit (FSRU) with a capacity of 180,000cub.m stationed at Hon Chuoi Island in Ca Mau.

Longer term, SK is proposing the addition of another 1,500MW LNG power plant in the region, bringing the total investment to approximately $2.5 billion.

To execute these ambitious plans, SK Group is requesting to be designated as the lead investor for key LNG projects, including the Nghi Son- Quynh Lap Power Plant and terminal; the Ca Na Power Plant and nfrastructure; the Ca Mau 3 Power Plant; and two additional power plants in Thanh Hoa and Ca Na.

Together, these LNG-based projects represent a total investment value surpassing $10 billion.

SK Group is a diversified South Korean conglomerate with interests spanning energy, chemicals, telecommunications, IT, semiconductors, and advanced materials.

The group comprises over 200 subsidiaries with a combined market capitalization approximating $200 billion, making it South Korea’s second-largest family-owned business conglomerate. Last year, SK reported revenues exceeding $150 billion.

In Vietnam, SK has invested approximately $3.5 billion in various corporate partnerships and environmentally friendly biodegradable material production projects.

VIR