SK Innovation Begins $2.3 Billion LNG Project in Vietnam

Choo Hyung-wook, CEO of SK Innovation, delivers a speech at the groundbreaking ceremony for the Quynh Lap LNG project in the Tan Mai area of Nghe An Province, Vietnam, on May 18. [Photo=SK Innovation]

SK Innovation has officially launched a massive liquefied natural gas (LNG) power generation project in Vietnam, valued at approximately 3.3 trillion won ($2.3 billion), accelerating its efforts to penetrate the Southeast Asian power and advanced industry markets. The company aims to implement a 'Korean-style energy and industrial cluster' model that integrates AI data centers and industrial complexes.
On May 18, a consortium formed by SK Innovation, Vietnam's state-owned power company PV Power (Petro Vietnam Power), and local partner NASU (part of the TH Group) held the 'Quynh Lap LNG Project Execution Announcement and Technical Infrastructure Groundbreaking Ceremony' in the Tan Mai area of Nghe An Province.
The event was attended by Choo Hyung-wook, CEO of SK Innovation, along with high-ranking officials from the Vietnamese central government, including Doan Minh Huan, President of the Ho Chi Minh National Academy of Politics, and Deputy Prime Minister Le Tien Chau, as well as local government representatives such as Nguyen Khac Tan, Secretary of Nghe An Province, and Bo Chong Hai, Chairman of the People's Committee.
The Quynh Lap LNG project is a significant energy initiative that will construct a 1.5 GW LNG combined cycle power plant and an LNG terminal in the Quynh Lap area, located about 220 kilometers south of Hanoi. The total project cost is estimated at $2.3 billion, with commercial operations expected to commence by December 2030.
This project is particularly noteworthy as it represents the realization of the 'Specialized Energy-Industrial Cluster (SEIC)' model proposed by the SK Group to the Vietnamese government, extending beyond mere electricity production.
Industry experts believe that the increasing demand for power from AI data centers, driven by global tech giants, combined with the Vietnamese government's policies to foster advanced industries, will enhance the growth potential of SK Group's local operations.
Notably, SK Group Chairman Chey Tae-won played a crucial role in securing this project. He engaged in multiple discussions with Vietnam's top leadership, including the General Secretary, President, and Prime Minister, to lay the groundwork for this significant venture.
Choo Hyung-wook emphasized, "The commencement of this infrastructure is a cornerstone for alleviating Vietnam's power shortages and fostering an advanced industrial ecosystem. It marks a historic first step toward the successful completion of the Quynh Lap project. We will work closely with our partners to achieve the goal of commencing commercial operations by 2030."

* This article has been translated by AI.

Lee nakyeong nakk@ajunews.com