SK Innovation begins construction on $2.3 billion Vietnam power plant and LNG terminal
Quick Look
- SK Innovation has started construction on a 3.3 trillion-won ($2.3 billion) power plant and LNG terminal project in Vietnam's Nghe An Province.
- The project, a joint venture with Vietnamese firms PV Power and NASU, is expected to be operational by December 2030.
AI-generated summary
Why It Matters
SK Innovation, South Korea's leading refiner, is undertaking a major infrastructure project in Vietnam. The project involves a joint consortium with two Vietnamese companies and aims to build a power plant and LNG terminal.
SEOUL, May 19 (Yonhap) -- SK Innovation Co., South Korea's leading refiner, said Tuesday that it has begun infrastructure construction for a 3.3 trillion-won (US$2.3 billion) power plant and liquefied natural gas (LNG) terminal project in Vietnam.
A groundbreaking ceremony was held in Nghe An Province, located about 220 kilometers south of Hanoi, for the joint consortium project with two Vietnamese companies, the company said in a release.
The consortium with Vietnamese power producer PV Power and sugar manufacturer NASU secured the project from the Nghe An provincial government in north-central Vietnam in February.
Under the agreement, the consortium will build a dedicated LNG port, an LNG terminal and a 1.5-gigawatt combined-cycle gas-fired power plant in Nghe An, with commercial operations targeted to begin by December 2030.
Open Questions
- What are the specific roles and equity stakes of PV Power and NASU in the consortium?
- What are the environmental impact assessments for the project?
- What are the potential challenges in securing LNG supply for the terminal?
- What is the expected economic impact on Nghe An Province?
