Vietnam and South Korea are set to jointly develop LNG infrastructure and nationwide supply chains in Vietnam, as outlined in a landmark agreement signed during the Vietnam-Korea Business Forum on June 23.
The collaboration between T&T Group and KOGAS also explores opportunities for hydrogen production, aligning with Vietnam's long-term energy plan.
The partnership aims to support Vietnam's objective of gradually reducing reliance on thermal coal power and prioritising domestic gas-fired electricity, in line with the country's Power Development Plan VIII.
LNG, which is natural gas cooled to a liquid state, plays a vital role in supplying energy for power plants, industries, urban areas, and transportation, helping reduce environmental pollution.
By teaming up with KOGAS, the world's largest LNG importer and exclusive wholesaler of natural gas in South Korea, T&T Group gains access to expertise, technology, and financial resources. This collaboration enables the execution of LNG and hydrogen projects in Vietnam, contributing to national energy security and socioeconomic development.
In addition, T&T Energy, a subsidiary of T&T Group, and SK E&S, an energy company under SK Group, also signed an MoU to cooperate in the LNG power sector.
Together, they will develop LNG terminals and gas-fired power plants in compliance with the regulations. SK E&S will take charge of securing the financial resources for project implementation.
Given global efforts towards carbon neutrality, LNG plays a crucial role in ensuring energy supply, reducing air pollution, and facilitating Vietnam's energy transition. The nation aims to develop 22,400MW of LNG thermal power, accounting for 14.9 per cent of the national power structure by 2023.
In Hai Lang, a consortium consisting of T&T Group, KOGAS, Korea Southern Power Co., Ltd., and Hanwha Group began the technical phase of the 1,500MW LNG Power Center Project in early 2022. With an investment of around $2.3 billion, the project is expected to commence commercial operations between 2026 and 2027.
KOGAS, established by the South Korean government in 1983, boasts extensive experience in LNG investment, construction, and the operation of terminals. It currently operates six LNG production plants and 72 storage tanks worldwide, with a total capacity of 11.7 million cubic meters.
SK E&S, an energy company under SK Group, is involved in various sectors such as chemicals, semiconductors, telecommunications, and biotechnology. It is constructing the largest LNG value chain in South Korea and actively participating in the next-generation energy industry, including the hydrogen sector.
The company has established a green investment portfolio encompassing renewable energy, energy solutions, and environmentally friendly LNG.
The collaboration between Vietnamese and South Korean entities in the LNG and hydrogen sectors represents a significant stride towards sustainable development, meeting the energy demands and reducing the environmental impact in both countries.
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