The LNG-fired power project will produce enough electricity to meet 6% of Vietnam’s total power capacity of 50GW
South Korea-based GS Energy and VinaCapital will move ahead with the construction of a 3GW LNG-to-power complex in Vietnam’s Long An province with an investment of KRW3.5 trillion ($3bn).
The parties were given the investment licenses for the power project in a ceremony that was attended by Vietnam’s Prime Minister Nguyen Xuan Phuc.
The VinaCapital GS Energy complex will be made up of the Long An I and II plants. The energy complex will be built on 90ha of land in the Southeast Asia Services Area, which is a part of the Long An International Port.
Targeted to begin operation in December 2025, the LNG-to-power complex will have two turbines of equal capacity. Upon its completion, the power project will generate enough electricity to meet 6% of Vietnam’s total power capacity of 50GW.
GS Energy will be responsible for constructing and operating the LNG-fired power plant in southern Vietnam. The power generated by the LNG-to-power complex will be purchased by Vietnam Electric Power.
The company, which is a subsidiary of South Korean conglomerate GS Group, had signed a memorandum of understanding (MoU) pertaining to the project with Vietnamese investment and asset management company VinaCapital in November 2019.
For operating and managing the LNG-to-power complex, GS Energy will look to set up an LNG value chain in the Southeast Asian country by installing LNG storage and vaporisation facilities.
As per a draft master power development plan of the Vietnamese government, the country will look to increase the share of gas-fired power production in its energy mix from 13% to 21% by 2030, and to 24% by 2045, Reuters reported.