A joint venture between South Korea's GS Energy and Vietnamese asset manager VinaCapital has received an investment certificate to proceed with the construction of an LNG-to-power complex in southern Vietnam's Long An province. GS Energy, the biggest private power generation company in South Korea, will build and operate the plant.
Long An I and II will each comprise a 1,500MW gas turbine, with total costs estimated at US$3 billion. Construction is expected to begin soon, and be completed by December 2025.
The original plan from the local government had been to build coal-fired plants, but a decision was made to switch the tender to LNG as part of the Vietnamese goverment's push for cleaner energy. The electricity generated will be sold to Vietnam Electric Power Corp under a 25-year power purchase agreement.
The investment certificate was handed over to VinaCapital GS Energy by Long An officials in a ceremony on March 21, the same day that Prime Minister Nguyen Xuan Phuc visited the province.
The power plant will be situated near the Long An International Port complex. Long An International Port is one of the biggest in Vietnam, and is currently being expanded to handle bigger vessels.
Since its incorporation in 2012, GS Energy has grown into a leading energy company via the investment in and supply of oil, gas and renewable energy. It is participating in various projects in the Middle East, North America and Southeast Asia. It is involved in the LNG chain from direct LNG trading, regasification and storage terminals, to electricity generation and district heating businesses.
Founded in 2003, VinaCapital is one of Vietnam’s leading investment management and real estate development firms, with US$3.3 billion in assets under management. The firm covers the full range of traditional and alternative asset classes, including listed equity, private equity, venture capital, fixed income, and real estate.