Posco interested in $2.2 billion Quynh Lap LNG thermal power plant

Posco interested in $2.2 billion Quynh Lap LNG thermal power plant. Photo: baodautu.vn

A delegation of Posco International, led by managing director Kim Dae Yeon, met with Deputy Minister of Industry and Trade Nguyen Hoang Long on November 20.

Managing director Kim Dae Yeon shared that it gained experience from operating Mong Duong II coal-fired power plant and is willing to help Vietnam’s energy sector.

Backing the proposal, Long said the ministry would facilitate the operation of South Korean businesses, including Posco. He also asked Posco to study bidding regulations in Vietnam before proceeding with the plan.

Posco earned a profit of KRW17.84 billion ($12.8 million) in the first half of this year from AES Mong Duong Power Co., Ltd., the operator of the $2.1 billion Mong Duong II coal-fired power plant in the northern province of Quang Ninh. The South Korean materials and steel conglomerate holds a 30 per cent stake in AES Mong Duong.

The 1,500-MW Quynh Lap LNG-to-power plant has been a prioritised project in the National Power Development Plan VIII (PDP 8). The facility will comprise an LNG-fired power plant, a gas terminal, a dyke and a receiving terminal.

It will have an LNG input of about 1.15 million tonnes a year and a port to receive ships of about 100,000DWT. It is expected to begin commercial operations before 2030.

According to Nghe An Department of Planning and Investment, Posco is one of five investors who have applied to join the $2.2 billion Quynh Lap LNG-fired power plant project.

The first promising investor is a consortium comprising PV Power - a subsidiary of state-owned giant PetroVietnam, Nghe An Sugar LLC and SK E&S Co., Ltd. has plans to use over 332 hectares, consisting of 60ha of land and 272ha of water surface.

Meanwhile, Power Generation Corporation 1, a subsidiary of state utility Vietnam Electricity, wants 260ha to develop the project, including 60ha of land and 200ha of water surface.

Another promising investor is Japan’s Sumitomo Corporation, which is expected to be allocated 182ha for the project, including 65ha of land and 117ha of water surface.

Another potential investor is a consortium comprising Viet Thanh Bamboo Energy Investment JSC and Qatar’s Gulf Petroleum Limited, which has plans to use 176ha, made up of 58ha of land and 118ha of water surface.

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Five consortiums interested in Quynh Lap LNG plant Five consortiums have shown interest in the $2.15 billion Quynh Lap liquefied natural gas (LNG) power plant, located in the central province of Nghe An.