South Korean energy majors GS Energy Corp. and Hanwha Energy Corp. are expected to speed up their liquefied natural gas (LNG) projects in Vietnam in line with President Yoon Suk Yeol’s visit to the country on June 22 and 23.

According to multiple sources from the conglomerate circle on Wednesday, GS Energy and Hanwha Energy have been engaged in long-time efforts to promote LNG power plant business in Vietnam.

Energy demand in the Southeast Asian country with 99.5 million population as of last year has been rising sharply. The country has been experiencing frequent blackouts due to lack of energy supply.

The Vietnamese government has been grappling with the challenge of providing access to electricity. In May, the government approved its eighth Vietnam Energy Development Plan, which emphasizes the need for increased power generation.

This has given impetus to GS Energy and Hanwha Energy’s LNG projects in Vietnam as it aligns with the country’s plan to expand its power supply. However, conducting business in Vietnam may be challenging, particularly with the new president Vo Van Thuong, known for his pro-China and conservative stance, experts say.

GS Energy has formed a strategic partnership with Vina Capital, Vietnam’s largest asset management firm, for a project. Under the partnership, GS Energy will construct and operate two 1.5-gigawatt LNG-fired power plants in the southern province of Long An, which is equivalent to the power output of three nuclear plants. The total investment for this project amounts to 3.5 trillion won ($2.74 billion).

Although GS Energy’s LNG power plant project was announced in 2021, it has faced a two-year delay in construction. Huh Yong-soo, chief executive officer of GS Energy, will visit Vietnam during Yoon’s trip to finalize the project. Huh has been leading the LNG project in Vietnam.

Hanwha Energy has experienced a delay of more than two years since 2021 for its own project. The company is collaborating with T&T Group in the Hai Lang region of Vietnam.

The project, valued at 2.5 trillion won, includes the construction of a 1.5-gigawatt LNG-fired power plant, an LNG terminal, and involves partners such as Korea Gas Corp. and Korea Southern Power Co.

Hanwha Group Vice Chairman Kim Dong-kwan who holds a 50 percent stake in Hanwha Energy will be part of the delegation accompanying President Yoon.

The economic mission to Vietnam comprises 205 companies, including 24 conglomerates and aims to explore collaboration in areas such as supply chain and future industries.

By Chung Seung-hwan, Song Min-geun, and Han Yubin

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