The project, located in the Quynh Lap area of Nghe An province, about 220 kilometers south of Hanoi, calls for the construction of a 1,500-megawatt combined-cycle gas power plant, a 250,000-cubic-meter LNG terminal, and a dedicated seaport. SK Innovation is developing the project through a consortium with Vietnamese state-owned power producer PV Power and local firm NASU.
Construction is slated to begin in 2027, with the terminal and power plant targeted for completion by 2030.
The Quynh Lap project drew competitive interest from the outset — companies from South Korea, Japan, and Qatar cleared preliminary screening when the project was first tendered in 2024, with the formal developer selection process launched in January this year.
"This selection proves that SK's unrivaled LNG value chain competitiveness resonates in the global market," an SK Innovation official said, adding that the company aims to address Vietnam's chronic power shortages while spurring regional economic growth in Nghe An province.
Vietnam has long grappled with electricity deficits driven by rapid industrialization and population growth, with its grid heavily reliant on coal and hydropower. SK Innovation said it plans to use LNG as a bridging fuel before transitioning to carbon-free power sources over the long term.
The company aims to leverage the Quynh Lap project as a springboard to replicate its model across Vietnam, building what it calls an "energy-industry cluster" network.
SK Innovation is targeting a global LNG portfolio of 10 million tons per year by 2030, up from its current annual volume of about 6 million tons.
The deal comes amid sluggish last year results.
SK Innovation disclosed last month that its consolidated revenue rose 8.2 percent year-on-year to 80.29 trillion won ($55.32 billion) in 2025, while operating profit climbed 25.8 percent to 448.1 billion won. However, the company swung to a net loss of 5.41 trillion won, a 127.9 percent deterioration from the prior year, prompting the company to forgo dividend payments.
The company attributed the bottom-line weakness to sluggish off-season performance at its E&S unit and softening profitability in its battery business, which offset the benefits of firm refining margins and solid results from its lubricants segment.
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