GS Energy Selected as First Korean Company to Operate Large-Scale LNG Power Plant Project in Vietnam

[Asia Economy Reporter Hwang Yoon-joo] GS Energy has been selected as the first Korean company to operate an LNG power plant project in Vietnam, further strengthening its global energy business capabilities.

GS Energy announced on the 21st that President Heo Yong-soo participated online in the announcement event for the selection of the LNG combined cycle power plant operator held by the Vietnamese government in Long An, Vietnam. Key officials attending the event included Vietnamese Prime Minister Nguyen Xuan Phuc, Vice Prime Minister Truong Hoa Binh, and Don Lam, CEO of VinaCapital.

Since November 2019, GS Energy has been promoting a project to build and operate a mega 3GW LNG combined cycle power plant in Long An, southern Vietnam, through a strategic partnership with VinaCapital, Vietnam's largest asset management company. The recent selection as the project operator by the Vietnamese government marks the fruition of this effort.

The electricity produced through this project will be stably sold under a Power Purchase Agreement (PPA) with Vietnam Electricity. Additionally, by independently importing LNG as fuel and operating storage and regasification facilities, GS Energy plans to establish an LNG value chain, advancing the so-called 'Gas to Power project.'

President Heo stated, "The government's active diplomatic support, including the New Southern Policy, played a significant role in this operator selection. Especially as we have entered the overseas market in the LNG power generation sector, which will serve as a bridge in the energy transition process, we will successfully complete the project and use this as an opportunity to demonstrate that the energy business capabilities of Korea and GS Energy are at a global level."

Vietnam is currently experiencing rapid economic growth, leading to a surge in electricity demand and worsening power shortages. In particular, the Vietnamese government is promoting a fuel transition from coal power to LNG power to mitigate environmental pollution issues such as carbon emissions, actively encouraging global energy companies to participate in power project development during this process.

GS Group, including GS Energy, currently holds a total power generation capacity of 5.7GW, maintaining its status as the top private power generation company in Korea. GS Energy has accumulated competitive power business know-how by establishing an 'LNG value chain' from fuel supply to power production and sales, operating not only LNG power generation but also LNG trading and LNG receiving terminal businesses. Based on this, GS Energy expects to make a significant contribution to alleviating Vietnam's power shortage. Furthermore, the company plans to use this entry as a foothold to explore various additional energy businesses in the Southeast Asian market.

Meanwhile, GS Energy has actively pursued overseas market development to grow as a global energy company, securing the largest crude oil production volume in a single project in Korean oil development history by participating in the UAE onshore production block project in 2015, and successfully developing an exploration block in the UAE in 2019, entering commercial production.

This content was produced with the assistance of AI translation services.