Thanh Hoa to Form Task Force with SK Innovation for Major LNG-to-Power Project
Thanh Hoa province is set to establish a task force to collaborate with SK Innovation and relevant agencies, aiming to overcome obstacles and expedite preparations for a significant LNG-to-power project management. The project, initially approved in March 2024, is designated as a nationally significant power source and is expected to generate substantial revenue for the state budget.
SK Innovation, a subsidiary of the South Korean conglomerate SK Group, chaired by Tae-Won Chey, proposed investing in an LNG-to-power project at the Nghi Son Economic Zone in Thanh Hoa. The proposed plant will have a capacity of 1,500 MW and an investment of over VND51,500 billion ($1.95 billion).
In a strategic move, SK Innovation now proposes integrating the Nghi Son project with the Quynh Lap LNG power project in Nghe An, forming the Quynh Lap-Nghi Son LNG powerbi cluster. This integration aims to share infrastructure, potentially reducing investment costs by around $700 million. The project aligns with the Adjusted National Power Development Plan VIII and remains feasible for commercial operation by 2030.
Vice Chairman of Thanh Hoa, Mai Xuan Liem, welcomed the proposal and confirmed provincial support. The project is expected to contribute nearly VND80,000 billion ($3.03 billion) to the state budget over its lifetime.
SK Innovation's proposed integration of the Nghi Son and Quynh Lap LNG power projects in Thanh Hoa and Nghe An, respectively, is expected to bring significant economic benefits to Vietnam. With the support of local authorities and alignment with national power development plans, the project is poised to contribute substantially to the state budget while enhancing the country's power infrastructure.
