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Vietnam and Korea Collaborate to Advance LNG and Hydrogen Projects

Arnes BiogradlijaBy Arnes Biogradlija26/06/20233 Mins Read
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Vietnam and Korea have joined forces to develop LNG (liquefied natural gas) and hydrogen projects in Vietnam, as announced during the Vietnam-Korea Business Forum held in Hanoi.

T&T Group, a Vietnamese conglomerate, and Korean partners, including Korea Gas Corporation (KOGAS), signed a memorandum of cooperation to strengthen their collaboration in the energy sector.

Under the agreement, T&T Group and KOGAS will work together to develop LNG power projects in Vietnam, with a focus on converting existing coal power projects to LNG electrification. This initiative aligns with the Vietnamese government’s policy to transition towards cleaner energy sources. Additionally, the two parties will explore opportunities in hydrogen production to meet the growing demand for power projects, both existing and future ones.

The cooperation between T&T Group and KOGAS extends beyond power projects. They will jointly develop projects utilizing LNG refrigeration heat from terminals across Vietnam and engage in LNG-related activities such as procurement, import, transportation, and supply for power generation and industrial purposes.

Mr. Do Quang Hien, Chairman of T&T Group’s Strategic Committee, emphasized the importance of utilizing domestic fossil energy sources efficiently while gradually reducing the reliance on coal-fired thermal power. The collaboration with KOGAS, a global leader in LNG, brings valuable experience, technology, and financial resources to support Vietnam’s LNG projects, ensuring energy security and contributing to the country’s economic development goals.

Ms. Choi Yeon Hye, General Director of KOGAS, highlighted that the cooperation between the two groups not only benefits their respective organizations but also contributes to the sustainable development of both countries. This memorandum of cooperation signifies the beginning of a broader partnership in the energy sector.

The joint efforts between T&T Group, KOGAS, and other Korean investors are already underway. The Hai Lang LNG Power Center Project phase I, with a total investment of nearly VND 54,000 billion, is set to commence commercial operations in 2026-2027. This project showcases the commitment to developing LNG power infrastructure in Vietnam and meeting the country’s growing energy needs.

In addition to the collaboration with KOGAS, T&T Energy (under T&T Group) and SK E&s Energy Company (under SK Group, Korea) signed a memorandum of cooperation in the field of LNG electricity. The agreement aims to develop LNG terminals and gas power plants in line with Vietnam’s development plans and regulations, with SK E&S responsible for securing financial resources for the project.

The development of LNG power in Vietnam plays a crucial role in the country’s sustainable energy transition towards a low-carbon, green growth economy. As outlined in Power Plan VIII, Vietnam aims to develop 22,400 MW of LNG thermal power by 2023, accounting for 14.9% of the national power structure.

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