A rendering of the proposed LNG power plant project in Nghi Son Economic Zone, Thanh Hoa province.
From the beginning of the 2020-2025 term to the present, the Nghi Son Economic Zone and industrial parks in Thanh Hoa province have licensed 86 domestic investment projects and 22 foreign investment projects, with a total registered capital of VND 22,773 billion and USD 323 million.
Among these, the most notable is the LNG Nghi Son Thermal Power Plant project in the Nghi Son Economic Zone, which involves the construction of a 1,500MW LNG-fired power plant, an LNG import terminal, a 1km-long breakwater, and auxiliary infrastructure to serve the LNG terminal, including an onshore LNG storage and regasification facility with a capacity of approximately 230,000m3 and a regasification capacity of about 1.2 million tons/year.
The project is expected to occupy an area of approximately 68.2 hectares, with a total investment of about VND 58,026 billion, equivalent to nearly USD 2.5 billion.
The project has a 50-year operational lifespan and is scheduled to commence commercial operations before 2030. It will be located in the southern area of Nghi Son port, in Hai Ha commune, Nghi Son town, Thanh Hoa province.
Prior to this, on February 28, a meeting of the Provincial Standing Committee was held to discuss and provide opinions on the investment policy for the project. According to the proposal submitted by the Party Committee of the Provincial People’s Committee, the Management Board of Nghi Son Economic Zone and Industrial Parks has received a dossier requesting approval for the investment policy of the LNG Nghi Son Thermal Power Plant project from five investors.
This will be a fierce competition among the five shortlisted investors:
A consortium of Japan’s largest power company, JERA, and Vietnam’s SOVICO Group.
The JERA-SOVICO consortium has been pursuing this project since 2020. JERA has conducted multiple site surveys and actively engaged with the leadership of Thanh Hoa province since February 2030. They have also proposed a specific location for the power plant in the southern part of the Nghi Son Economic Zone.
Within this consortium, JERA is a joint venture between Tokyo Electric Power and Chubu Electric Power, Japan’s largest power generation company. The company participates in renewable energy projects across Asia, including in India and Thailand.
Once completed, this is expected to be the third “super project” with an investment of billions of US dollars in Thanh Hoa province.
JERA has been operating gas-fired power plants in Vietnam since 2005 and considers the country a priority market. They have strong potential to participate in both LNG and renewable energy projects in Vietnam.
The company is currently planning to build an LNG-fired power plant and LNG handling facilities in Vietnam. In early 2023, JERA commenced comprehensive operations in the Southeast Asian country through its subsidiary, Jera Energy Vietnam Co Ltd., based in Hanoi.
A consortium of Korea Southern Power Co. (KOSPO), Korea Gas Corporation (KOGAS), Daewoo Engineering & Construction Co. (Daewoo E&C), and Anh Phat Trading and Investment Group.
This consortium comprises three major South Korean companies and Anh Phat Group, the largest private enterprise in Thanh Hoa province. Anh Phat Group has a diverse investment portfolio, with a focus on the import and trading of petroleum products. KOSPO is South Korea’s largest LNG-fired power plant operator, supplying 9.1% of the country’s total power consumption. They currently provide over 2,000MW of LNG-fired power and 7,000MW of renewable energy in the US, Qatar, Indonesia, India, and Vietnam.
In addition to its energy business, KOSPO is also involved in water supply, industrial park infrastructure, and the development of high-end resorts, tourism, and restaurants in the region. In the Nghi Son Economic Zone, the company is investing in a water supply plant, a petroleum warehouse, and the Dong Vang Industrial Park with a total investment of over VND 2,500 billion. Anh Phat Group is also the investor in berths 3, 4, and 5 of Nghi Son port, with a total investment of over VND 1,600 billion.
KOGAS, another member of the consortium, is the world’s largest operator of LNG terminals and importer of LNG, and has been the leading supplier of natural gas in South Korea for 37 years.
Daewoo E&C is one of the top four construction companies in South Korea, with a presence in 47 countries and territories worldwide. They have been operating in Vietnam for many years and were the first South Korean construction company to establish a representative office in the country.
Gulf Energy from Thailand
Gulf Energy is also a potential contender. There have been several bilateral visits and meetings between the Thai economic group and the leadership of Thanh Hoa province to explore investment opportunities, including the LNG power plant project in Nghi Son. The provincial leaders have also visited Gulf Energy’s headquarters in Thailand to promote investment.
In addition to pursuing the LNG project in Nghi Son, Gulf Energy has expressed interest in investing in a gas-fired power plant with an investment of up to USD 5 billion in Nam Dinh province.
Gulf Energy has been expanding its operations in Vietnam since 2018, acquiring shares in two solar power projects (GTN1 and GTN2) in Tay Ninh and two wind farms in Gia Lai province.
SK E&S (South Korea) and the consortium of Vietnam Oil and Gas Group (PV Power – POW) and T&T Group.
SK E&S is an energy company under SK Group, the second-largest private conglomerate in South Korea, with 304 subsidiaries and affiliates operating in various industries, including chemicals, semiconductors, telecommunications, and biotechnology.
The consortium of SK E&S and PV Power, along with T&T Group, is another strong contender that could bring surprises to the competition.
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