A consortium led by Korea Gas Corp. (KOGAS) and Hanwha Energy is highly likely to win a Vietnamese LNG power plant construction project worth 5.5 trillion won.

The consortium, which also includes Korea Southern Power and Vietnam's T&T Group, was the only participant to submit a bid proposal for the 1,500MW Hai Lang LNG power plant project at a tender organized by the local government in Quang Tri Province, Vietnam on Aug. 7. The consortium is currently in exclusive negotiations, so it is certain to win the project.

In March this year, GS Energy decided to build a 3GW LNG combined cycle power plant in Long An, southern Vietnam.

The Hai Lang LNG power plant is a large-scale project. The first stage of the project involves building an LNG power plant with a capacity of 1,500MHz for operation starting in 2028. The project will cost 2.5 trillion won. Through second- and third-stage projects, the plant’s capacity will be expanded to 4,500MHz. The total project cost is expected to reach 5.5 trillion won.

The Korean consortium plans to expand its business territory in Vietnam's energy market based on the order to build Hai Lang LNG power plant. Hanwha Energy acquired a 10 percent stake in the Vietnamese energy company Bamboo Capital Group (BCG) in June 2019 to secure the right to the solar energy business. KOGAS is also working with Energy Capital Vietnam, a U.S.-based company specializing in investment in Vietnam, to build a 3,600MW LNG complex power plant in the Mui Ke Ga area of Binh Thuan.

Vietnam's power shortage is deepening due to rapid economic growth. In the summer of 2020, a series of blackout occurred. As a result, the Vietnamese government is actively promoting a shift in power plant fuels from coal to LNG. It is also actively expanding power facilities by significantly expanding renewable energy power generation facilities. The Vietnamese government’s goal is to boost the nation’s total capacity of power generation facilities from 69.3 GW in 2020 to 137.7 GW in 2030 and 233.8 GW in 2040.

Vietnam is planning to expand its LNG power plants to 4.1GW by 2025 and 59 GW by 2045, preparing for a spike in electricity demand. The Vietnamese government's goal is to secure 42.3GW of solar energy, 45.9 GW of wind power, and 47.8 GW LNG power generation in 2040.