President Lee Seung-woo of Korea Southern Power Co. (KOSPO). (Photos: KOSPO)

Korea Southern Power (KOSPO) has teamed up with Korea Gas Corp. (KOGAS) and Hanwha Energy to land a gas-fired power generation and LNG terminal business project in Vietnam.

The Korea Consortium of KOSPO, KOGAS and Hanwha Energy was selected as a final investor for a 1.5GW Hai Lang LNG power generation project by Quang Tri provincial government in Vietnam.

In 2019, the Korea Consortium struck an MOU to explore a gas-to-power business project.

It submitted to the Vietnamese government a proposal for a 4.GW project in cooperation with T&T Group in June 2020.

The latest order came about eight months after the proposal made it onto the Vietnamese power development plan, also known as PDP7R, this past February.

Pham Ngoc Minh, head of the Southeast Economic Special Zone of Quang Tri Province, Vietnam, poses with representatives from the Korea Consortium of KOSPO, KOGAS and Hanwha Energy as it was selected as a final investor for a 1.5GW Hai Lang LNG power generation project.

Vietnam is predicted to see power demand surge between 6 percent and 10 percent annually, thanks to the rapid growth of industries.

With the landing of the latest order, the Korea Consortium is expected to contribute greatly to easing Vietnam’s power supply shortage by demonstrating experiences and top capabilities it has accumulated in each power and LNG sectors.

The Hai Lang project involves the construction and operation of a 1.5GW integrated gasification combined cycle and LNG terminal in the Quang Tri. It will cost about 2.5 trillion won.

When the project is completed in 2027, it is expected to earn more than 1 trillion won in sales revenues.

Korean makers of homegrown components and systems like boilers and transformers will make a simultaneous market entry in the construction of power plant and LNG terminal, creating jobs and making Vietnam a springboard to enter the Asian market with a high potential.

A bird’s eye-view of Hai Lang LNG terminal. (Photos: KOSPO)

A KOSPO official said, “Vietnam is any other market with future many business opportunities on the back of its high economic growth rate and rising energy demand.

The successful implementation of the project is expected to have a positive effect pf securing Asia’s new center and diversifying business portfolio,” the official said.

Meanwhile, KOSPO has earned sound income from the 517MW Kelar Combined Cycle Power plant, its first overseas investment project in Chile, dedicated in 2017.

KOSPO is expected to put into commercial operation the 1,085MW Niles Gasification Combined Cycle Power Plant in the United Sates in the first half of next year.