Nguyen Thi Thanh Binh, Deputy General Director of T&T Group (left) and Choi Yeon Hye, KOGAS’s General Director (right) signed the MoU. — Photo courtesy of T&T Group

T&T Group and South Korean partners on Friday at the Viet Nam-South Korea Business Forum in Ha Noi signed a Memorandum of Understanding (MoU) to develop LNG and hydrogen projects in Viet Nam.

Accordingly, T&T Group and Korea Gas Corporation (KOGAS) will co-operate in developing LNG gas power projects in Viet Nam, and convert coal power projects already in Power Plan VIII to LNG gas power following the Government's policy.

The two sides will jointly develop projects using LNG refrigeration from LNG terminals in Viet Nam and operate LNG cold chain business nationwide. They will also engage in other business activities related to LNG (procurement, importation, transportation and supply of LNG for power generation and other industrial purposes).

Do Quang Hien, Chairman of the Strategy Committee of T&T Group, said that the efficient exploitation and use of domestic fossil energy sources combined with imports will contribute to realising the goal of gradually reducing the proportion of coal-fired power plants, giving priority to the development of domestic gas power and LNG gas power sources with an appropriate scale in accordance with Power Plan VIII.

“The cooperation with KOGAS - the exclusive natural gas wholesaler in South Korea and the world's largest LNG importer will bring T&T Group valuable resources in terms of experience, techniques and technology and finance to implement LNG projects in Viet Nam, thereby contributing to ensuring national energy security, providing enough electricity to meet socio-economic development,” Hien added.

Choi Yeon Hye, KOGAS’s General Director said the MoU in particular and the two sides’ energy projects would not only bring development for the two groups but also contribute to the two countries’ sustainable development.

In 2022, a consortium including T&T Group, KOGAS, KOSPO and HANWHA (South Korea) officially started the technical component of Hai Lang LNG Power Centre Project’s Phase I with a total investment of nearly VND54 trillion (US$2.3 billion) in central province of Quang Tri. The project is expected to come into commercial operation in 2026-27 period.

Within the forum’s framework, T&T Energy - a member of T&T Group and SK E&S - an energy company of SK Group (South Korea) signed a MoU on co-operation in LNG power sector.

The two sides will co-operate to develop LNG terminal and gas power plant in accordance with development orientation and legal regulations of Viet Nam. Under the agreement, SK E&S will take responsibility for seeking financial resources to for the project implementation.

According to the Power Plan VIII approved in May, Viet Nam targeted to develop 22,400MW of LNG thermal power, equivalent to 14.9 per cent of the national power structure by 2030. — VNS