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GS Energy to build 3GW LNG-fired plant in Vietnam

Released at: 15:38, 29/11/2019

GS Energy to build 3GW LNG-fired plant in Vietnam

Photo: GS Energy

South Korean company signs MoU with VinaCapital Investment for power plant in country's south.

by Phi Linh

South Korea’s GS Energy Corp., an energy business subsidiary of the conglomerate the GS Group, will build a 3GW liquefied natural gas (LNG) power plant in Vietnam; a move that is expected to help the South Korean energy giant go global and diversify its business activities.

It signed an MoU with VinaCapital Investment, a Vietnamese asset management company, on November 28 in Seoul, to develop the LNG combined cycle power project in the country, according to pulsenews.

The signing ceremony was attended by GS Energy CEO Huh Yong-soo and VinaCapital CEO Don Lam, among others.

The two sides will jointly build and operate the 3GW LNG-fired combined cycle power plant in Vietnam’s south, which will generate sufficient power to cover 6 per cent of the country’s total power capacity of 50GW.

GS Energy plans to sell electricity generated from the plant to state-run Electricity of Vietnam after signing a power purchase agreement (PPA), which will guarantee stable profits over the long term.

To operate and manage the power plant, GS Energy plans to establish an LNG value chain in Vietnam by introducing LNG and managing storage and vaporization facilities.

GS Energy expects that South Korea`s largest private power producer, the GS Group, will meet the needs of the Vietnamese Government, which has been actively seeking to ramp-up power generation in the country as it grapples with chronic power shortages.

Vietnam needs to boost power production to meet soaring electricity demand in line with the rapid growth of its economy. The government projects the country will continue to suffer from power shortages until 2025 and has been actively inviting global energy firms to join its power development projects.

GS Energy, which is involved not only in LNG power plant construction but also LNG trading and LNG buyout and management, boasts extensive know-how in the power business. It has a concrete LNG value chain encompassing fuel supply to power production and sales.

“The company will successfully complete its project in Vietnam to prove its global-level capacity in carrying out energy projects,” said GS Energy CEO Huh. “The company will take the opportunity to expand its business realm beyond its current mainstay businesses, such as in the areas of oil refining, petrochemicals, resource development, LNG, power, and collective energy.”

In 2015, GS Energy secured South Korea’s single-largest crude oil production output by joining a land production mine project in the UAE. This year, the company successfully developed an exploration mine and launched commercial production. GS Energy also acquired a stake in Indonesia’s BSSR Coal Mine in 2017; a move to aggressively expand its presence overseas.

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