Securing a strategic energy base in Southeast Asia

Pursuing a business model that integrates the entire process of from procurement to storage and power generation of LNG

SK Innovation has been selected as the operator of a large LNG liquefied natural gas (LNG) power plant in Quynh Lap, Nghe An Province, Vietnam, thereby accelerating its global LNG business expansion. This is a massive project, with a total project cost of USD 2.3 billion (approximately KRW 3.3 trillion). SK is projected to secure a strategic foothold in the Southeast Asian energy market.

This is a large-scale energy infrastructure project that will simultaneously build a 1500MW gas combined thermal power plant; a 250,000m3 LNG terminal; and a dedicated port in the Quynh Lap area, about 220km south of Hanoi. It is a project aimed at stabilizing the supply and demand of electricity in Vietnam and expanding the industrial base with an integrated structure of power generation, storage, and supply functions.
SK Innovation has acquired business rights from the government of Nghe An province by forming a consortium with PV Power, for power generation under the Vietnam National Oil and Gas Group (PVN) and local company NASU. The goal is to begin construction in 2027 and complete LNG terminals and power plants in 2030.
The LNG value chain capabilities that SK Innovation has been building will be applied to this project. The strategy is to secure fuel supply and demand stability and price competitiveness at the same time through a business model that integrates the entire process from LNG procurement to storage and power generation.
Vietnam has maintained a power structure centered on coal and hydropower, but has faced chronic power shortages due to recent rapid industrialization and population growth. LNG is emerging as a practical transition energy source in a situation where it is not easy to expand coal and hydroelectric power generation due to environmental pollution and climate risks.
With this project, SK Innovation plans to expand its LNG business in Vietnam and increase its global LNG portfolio, currently about 6 million tons per year, to 10 million tons by 2030, thereby advancing as a global energy company.

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