Investment Proposal of $2.1 Billion for LNG Power Project under Consideration by SK Group in Nghe An
In the heart of north-central Vietnam, the proposed Quynh Lap Liquefied Natural Gas (LNG) Power Plant is set to become a significant step forward in Nghe An's ambition to establish itself as a hub for sustainable development. The project, valued at approximately $2.1 to $2.2 billion, is currently in advanced stages of exploration and negotiation with local authorities.
SK Group, a South Korean conglomerate, has been actively pursuing investment opportunities for the Quynh Lap LNG-fired power plant. In July 2025, a working session was held with Nghe An provincial authorities to discuss project details, including the construction site in Tan Mai district, bidding procedures, and potential shared infrastructure with the nearby Nghi Son LNG-to-power plant in Thanh Hoa province.
The Quynh Lap LNG power plant is slated to have a capacity of 1,500 MW, comprising two units of 750 MW each. It is expected to require about 1.15 million tons of LNG annually and is part of Vietnam’s National Power Development Plan VIII (PDP VIII) as a prioritized project, scheduled to begin commercial operations before 2030.
The facility, planned for Tan Mai ward, Hoang Mai township, will include an LNG receiving terminal, a regasification system, and synchronised infrastructure, such as a gas storage facility, an LNG terminal capable of receiving ships of roughly 100,000 DWT, and a dyke.
The Nghe An government's support for the project is evident, with favorable conditions offered to facilitate investment. The investor selection process may be through public bidding or direct appointment if the project qualifies as urgent under Vietnam’s amended Electricity Law 2024.
In October 2024, Nghe An province received investment proposals from five groups, including a consortium involving SK E&S Co., Ltd (part of SK Group), PV Power, and Nghe An Sugar LLC, among others.
SK Group's energy strategy in Vietnam includes three proposed LNG power projects under its green growth portfolio. The company has already committed approximately $3.5 billion into Vietnam through high-profile mergers and acquisitions.
As Vietnam transitions to LNG, the Quynh Lap plant is expected to account for a significant portion of the country's total capacity by 2030, with LNG-fired power expected to account for 14.9% of Vietnam's total capacity.
However, challenges remain in infrastructure readiness and global LNG price volatility. Despite these obstacles, investors like SK Group see long-term potential in Vietnam's energy market. The proposed Quynh Lap plant is a new anchor investment in Nghe An's industrial zone, signaling a promising future for sustainable development in the region.
Local authorities in Nghe An believe large-scale energy projects will play a crucial role in attracting secondary investments. SK's next step is further technical due diligence, environmental assessments, and engagement with Vietnamese ministries before finalising its decision. The outcome may depend on regulatory clarity, power purchase arrangements, and LNG import mechanisms in Vietnam.
In conclusion, the Quynh Lap LNG Power Plant, if approved, will contribute significantly to Nghe An's industrial growth and Vietnam's energy transition strategy, underscoring SK Group's commitment to sustainable development and its faith in Vietnam's burgeoning energy market.
Sports enthusiasts in Nghe An could look forward to recreational facilities potentially being developed alongside the Quynh Lap LNG Power Plant, as such shared infrastructure with the nearby Nghi Son LNG-to-power plant in Thanh Hoa province might include extra spaces that could be utilized for this purpose. Furthermore, the planned facility, due to its significance in Nghe An's industrial growth and Vietnam's energy transition strategy, could potentially attract sports-related investments and developments in the region, augmenting opportunities for local sports enthusiasts.
