Vietnam’s Nghe An breaks ground on nearly $2.3bn LNG power plant project

The groundbreaking ceremony was part of the activities to commemorate the 136th birth anniversary of late President Ho Chi Minh (May 19, 1890 - May 19, 2026).

The Nghe An People’s Committee approved the project in February this year.

The investor consortium includes PetroVietnam Power Corporation, Nghe An Sugar Co. Ltd., and South Korea’s SK Innovation.

According to the approved plan, the project will cover more than 152 hectares in Tan Mai Ward, including both land and water areas, excluding the shared breakwater zone for the Dong Hoi port area.

The land area accounts for nearly 60 hectares, while the remaining area consists of coastal and marine space.

The project includes a 1,500MW LNG-fired thermal power plant using two combined-cycle gas turbine units, each with a capacity of 750MW. Construction and commercial operation are expected between 2026 and 2030.

The project will also include a 250,000-cubic-meter LNG storage facility, regasification systems, a dedicated port capable of receiving LNG vessels of up to 150,000 tonnes, and synchronized technical infrastructure.

The plant is expected to consume around 1.15 million tonnes of imported LNG annually.

The Quynh Lap LNG thermal power plant is considered a strategic project in Nghe An’s socio-economic development plans. It is the largest among the province’s 12 key development projects.

Provincial authorities expect the project to strongly support Nghe An’s target of achieving annual economic growth of more than 12 percent over the next five years by attracting industrial investment, accelerating economic restructuring, and increasing the industrial sector’s share in the province’s gross regional domestic product.

Vo Trong Hai, chairman of the Nghe An People’s Committee, said the project would not only provide stable electricity for the national power system but also attract industrial investment and strengthen the province’s industrial economy.

He added that the project is expected to generate stable budget revenue of VND6–7 trillion ($227.6-265.6 million) annually once operational, making it one of the province’s largest revenue sources.

The site for the project was originally planned for the Quynh Lap I coal-fired thermal power plant project, launched in 2015 by Vietnam National Coal and Mineral Industries Group with total investment of $2.2 billion.

The project was part of the larger 2,400MW Quynh Lap Power Center.

However, due to financing difficulties, the coal-fired project failed to meet its planned 2020 completion target.

In 2020, the standing board of the Nghe An Party Committee proposed removing the Quynh Lap I and II coal-fired projects from the national power development plans.

A year later, provincial authorities proposed converting the coal-fired projects into an LNG power project in line with global green energy trends.

In 2023, the prime minister-approved Power Development Plan VIII officially removed the Quynh Lap I and II coal-fired projects and replaced them with the current 1,500MW LNG power project aimed at strengthening energy security while reducing emissions and protecting the environment.