GS Energy and Export-Import Bank Sign MOU for Financial Support of Long An LNG Power Project in Vietnam

Establishing Value Chain from LNG Import to Power Plant Operation
Listed as Key Project in Vietnam's 8th Power Development Plan

On the 23rd (local time), GS Energy signed a tripartite MOU with the Export-Import Bank of Korea (hereinafter KEXIM) and Vietnamese asset management company VinaCapital for KEXIM's financial support related to the local 'Long An LNG Power Plant Project' at the 'Korea-Vietnam Business Forum' held in Hanoi, Vietnam. VinaCapital is a joint project owner of the Long An LNG Power Plant Project.

This project involves constructing a 3GW LNG combined cycle power plant in Long An Province in southern Vietnam to supply electricity. The project was listed as a priority important project in the 8th Power Development Plan of Vietnam announced last month by the Ministry of Industry and Trade of Vietnam. The signing of this MOU is expected to accelerate the project’s progress.

GS Energy has been promoting the project since November 2019 through a strategic alliance with VinaCapital. In March 2021, based on KEXIM’s support for the project feasibility study, the project rights were obtained from the Vietnamese government authorities.

(From left) Don Di Lam, CEO of Bina Capital; Yoon Hee-sung, President of Export-Import Bank; Heo Yong-soo, President of GS Energy
Photo by GS Energy

The electricity produced here will be stably sold through a Power Purchase Agreement (PPA) with Vietnam Electricity (EVN). In addition, the project plans to proceed as a so-called ‘Gas to Power Project’ by establishing an LNG value chain, including the self-import of LNG as fuel for power generation.

Huh Yong-soo, President of GS Energy, said, "This project is a symbolic cooperative project that obtained project rights through KEXIM’s support for the feasibility study in the early stages of project review," adding, "With the signing of the MOU for financial support, we can gain further momentum in advancing the project." He also added, "The active diplomatic support from our government is greatly helping smooth communication with the Vietnamese government."