SK Innovation breaks ground for $2.3 bil. LNG project in Vietnam

Choo Hyeong-wook, CEO of SK Innovation, speaks during a groundbreaking ceremony for technology infrastructure for a power plant and liquefied natural gas (LNG) terminal project in Vietnam, Tuesday. Courtesy of SK Innovation

SK Innovation, Korea's leading refiner, said Tuesday that it has begun infrastructure construction for a 3.3 trillion-won ($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.