SK Innovation has been selected to lead a landmark LNG power project in Vietnam, marking a significant step in the company’s global energy strategy. The project, valued at approximately US$2.3 billion (about KRW 3.3 trillion), will be developed in Nghe An Province, located in north-central Vietnam.
The consortium, comprising SK Innovation, PV Power (PetroVietnam Power Corp., a subsidiary of Vietnam’s state-run PetroVietnam group), and Vietnamese company, NASU, has been designated by the government of Nghe An Province as the project developer for the Quynh Lap LNG power project. This initiative will establish a 1500 MW combined cycle gas power plant, a 250 000 m3 LNG terminal, and a dedicated port in the Quynh Lap region, approximately 220 km south of Hanoi. Construction is scheduled to begin in 2027 and be completed by 2030.
SK Innovation’s participation brings together its proven expertise in LNG power generation and its global LNG value chain, complementing the local strengths of its Vietnamese partners. This collaborative approach is expected to deliver optimal synergy and contribute to the region’s long-term energy and industrial development.
The Quynh Lap LNG power project attracted interest from leading global companies, with participants from Korea, Japan, and Qatar advancing through the initial bidding and preliminary evaluation in 2024. The final project developer selection was conducted among these shortlisted firms in January 2026.
SK Innovation is also considering expanding the LNG terminal into a regional hub, supplying gas to nearby power plants. This approach is expected to enhance project efficiency, ensure timely energy supply, and support the integrated growth of energy infrastructure and industry, in line with Vietnam’s national development plans.
Over the past four years, SK Innovation has collaborated closely with the Vietnamese government to establish a long-term roadmap supporting both industrial advancement and carbon neutrality. Central to this vision is the Specialized Energy-Industry Cluster (SEIC) model, which leverages stable LNG power generation as a foundation for regional growth and sustainable development.
The SEIC model is designed to foster high-value industries near the power plant, such as AI data centres and logistics hubs, contributing to job creation, talent development, and overall economic vitality. SK Innovation’s phased approach, using LNG for immediate energy needs while preparing for future zero-carbon power sources, underscores its commitment to shared and sustainable prosperity.
Chairman Chey Taewon of SK Group and SK Innovation’s leadership have engaged in ongoing discussions with Vietnamese government officials to refine and align the SEIC model with Vietnam’s energy policies and development strategies. The company’s dedication to this collaborative vision was reaffirmed through high-level meetings in 2025. Through the SEIC model, SK Group has also emphasised its strong commitment to contributing to Vietnam’s industrial and economic development, and to achieving mutual growth alongside its Vietnamese partners.
This project represents the first overseas application of SK Innovation’s integrated LNG value chain, a model already proven in Korea’s private sector. In contrast to conventional methods, which focus solely on constructing power plants or simply trading LNG, SK Innovation has proposed a business model that leverages its global LNG portfolio to transport LNG directly to Vietnam’s terminal and use it as fuel for the power plant. This integrated approach not only enhances fuel supply stability but also enables the project to flexibly respond to fluctuations in global market conditions, ensuring greater energy security for the region.
With these strategies, SK Innovation plans to expand its global LNG portfolio to 10 million t by 2030, reinforcing its commitment to global energy leadership.
An SK Innovation spokesperson said, “This project demonstrates the strength of international collaboration and the competitiveness of SK’s integrated LNG value chain. By working closely with the Nghe An provincial government and our partners, we look forward to contributing to Vietnam’s energy development and regional prosperity.”