The shift from coal to liquefied natural gas (LNG) as fuel, along with the involvement of major international energy and financial corporations, has given a new impetus to this billion-dollar project, making it a focal point for clean energy investment in the North.
THE BILLION-DOLLAR PROJECT: A DECADE-LONG JOURNEY AND A MAJOR FUEL TRANSITION
The Cong Thanh Thermal Power Plant project was initiated in 2011 with an initial capacity of 600 MW using coal, and a total investment of approximately $1.2 billion. The first and second units were planned to be operational by 2014.
However, after more than 12 years, the project has not completed its main components, and the current status includes only a gate and a partial fence, with a large area of vacant land. The main challenges, as stated by the investor, include difficulties in changing shareholders and arranging investment, along with policy barriers for coal-fired power plants.
In this context, the project has been proposed to transition to imported LNG, increasing the capacity to 1,500 MW, and adopting modern combined-cycle gas turbine technology. This aligns with the orientation towards clean energy development and the Master Plan for National Power Development for the period of 2021-2030, with a vision towards 2050 (Master Plan VIII), which has been adjusted to officially include this project.
The total investment has been adjusted to $2 billion, with an expanded land area of 197.3 hectares, encompassing the main plant area, gas and cooling water pipelines, LNG storage and port facilities. The expected electricity output is approximately 9 billion kWh per year, significantly contributing to the country’s energy security.
The inclusion of the project in Master Plan VIII marks a significant turning point, paving the way for expedited investment and operation, expected to be in the phases of 2026-2030 or 2031-2035, depending on the progress of the national power system.
INTERNATIONAL “SHARKS” RESTRUCTURING AND INVESTING IN THE CONG THANH LNG PROJECT
The Cong Thanh LNG project is being restructured by a consortium of international investors, including BP (British Petroleum, UK), Actis Investment Fund (UK), and GE (General Electric, USA) – leading names in the global energy and financial sectors.
BP takes on the role of providing capital, LNG storage solutions, and gas supply for the project, while also facilitating capital arrangement from international financial institutions. Actis is responsible for capital arrangement from these institutions, including Export Credit Agencies (ECAs) and commercial banks. GE supplies key technology and equipment, such as advanced combined-cycle gas turbines and generators, and also participates in capital arrangement from international financial organizations.
The collaboration of this trio of investors is expected to create a synergistic effect, helping the project overcome long-standing challenges while ensuring international standards in terms of progress and quality.
The investors signed a cooperation agreement in July 2022, and the domestic partner, Cong Thanh Thermal Power Joint Stock Company, has completed land clearance, leveling, and necessary technical infrastructure investment for the project.
SK GROUP’S INTEREST AND AMBITION TO DEVELOP AN LNG ECOSYSTEM IN CENTRAL REGION
In addition to the BP-Actis-GE consortium, the SK Group (South Korea) has recently expressed special interest in the Cong Thanh LNG project, along with other LNG power projects in Thanh Hoa and Nghe An provinces. SK is one of the largest conglomerates in South Korea, with a market capitalization of nearly $200 billion, and extensive investment experience in Vietnam across various sectors, including high technology, renewable energy, telecommunications, and pharmaceuticals.
SK’s representative met with Mr. Nguyen Hong Dien, Minister of Industry and Trade, in April 2025, affirming their commitment to expanding investments in high-tech, clean, and environmentally friendly energy sectors. Notably, SK aspires to collaborate on LNG power projects in potential localities such as Thanh Hoa and Nghe An.
Additionally, SK proposed building an integrated industrial center network across Vietnam, including an AI and Innovation Center in North Central Vietnam associated with the Nghi Son and Quynh Lap LNG projects, a Hydrogen, Logistics, and Innovation Center in South Central Vietnam linked to the Ca Na LNG project, and an Environmentally Friendly Agricultural Center in the Mekong Delta connected to the Ca Mau LNG project.
These proposals reflect SK’s long-term vision of developing a green, modern, and sustainable industrial ecosystem in Vietnam.
PROGRESS, GRID CONNECTION OPTIONS, AND CHALLENGES TO BE ADDRESSED
The grid connection options for the Cong Thanh LNG project are under consideration, with potential connections to the 500 kV Hung Yen, Nam Ha Noi, or Long Bien substations, ensuring alignment with the national power system’s progress.
While the project has completed land clearance, leveling, and necessary technical infrastructure development, the fuel transition from coal to LNG necessitates a synchronized adjustment in the infrastructure of LNG storage facilities, logistics, and gas transportation systems. Moreover, international LNG price fluctuations and approval processes, along with land clearance procedures, remain significant challenges, requiring close coordination between ministries and local authorities.
The Cong Thanh Thermal Power Plant project is expected to significantly contribute to the North’s power supply and marks a strategic step forward in the government’s clean energy transition, as outlined in Master Plan VIII.
With the involvement of leading international “sharks” and a focus on clean energy development, the Cong Thanh Thermal Power Plant project is gradually overcoming long-standing obstacles, offering new prospects for Northern power development and boosting the local economy in Thanh Hoa province.
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