SK Innovation, together with Vietnam’s PetroVietnam Power (PV Power) and local partner NASU (a TH Group affiliate), is reported to have broken ground on a project to build a 1,500MW LNG combined cycle power plant along with a 250,000-cubic-meter LNG terminal and dedicated port in Quynh Lap, Nghe An Province, Vietnam. The groundbreaking ceremony was held on May 18, 2026, with total investment reported at approximately $2.3 billion.
The project is reported to comprise a 250,000-cubic-meter terminal and dedicated port for importing and storing liquefied natural gas (LNG), along with a 1,500MW combined cycle gas turbine (CCGT) power plant using it as feedstock. SK Innovation is reported to lead the project, with PV Power and local partner NASU participating. This is a separate project from the previously covered Ca Na LNG power investment contract in Vietnam, differing in location and participants.
Total investment is reported at approximately $2.3 billion, with generation capacity of a 1,500MW LNG combined cycle plant and LNG terminal storage capacity of 250,000 cubic meters. The groundbreaking ceremony was held on May 18, 2026, with commercial operation targeted for December 2030.
Vietnam is reported to have continued ordering LNG-based combined cycle power plants to meet rapidly growing electricity demand. Through this project, SK Innovation is reported to be participating in Vietnam’s LNG import and power generation business with an integrated structure spanning from upstream (terminal) to downstream (power generation).
This project is an example of a Korean company participating in an integrated manner across Vietnam’s LNG value chain, from terminal infrastructure to power generation facilities, aligning with the broader trend of Southeast Asian countries transitioning from coal-fired to LNG-based power generation. Bundling an LNG terminal and power plant into a single project is interpreted as a strategy to reduce feedstock procurement risk and improve overall project profitability, a structure commonly seen in recent LNG-linked power projects ordered in Vietnam. The fact that the separate Ca Na LNG power project is also being pursued in the same country illustrates that Vietnam is simultaneously expanding LNG power infrastructure across multiple regions. As Korean companies expand their energy infrastructure investments in Vietnam, the success of this project is likely to serve as a reference case for similar future projects. The LNG supplier and import price terms are also cited as key variables determining the project’s economics.
Which supplier will sign the long-term LNG supply contract, and how import price terms will be finalized, are the first points to confirm. Whether the commercial operation target of December 2030 is met is also worth watching. When suppliers for key equipment such as gas turbines will be finalized is another point to watch. How the supply chain and order competition dynamics with similar LNG combined cycle projects in Vietnam (such as Ca Na) unfold also remains to be seen.