Hanwha Energy said Thursday that it has joined hands with Korea Gas Corp. (Kogas) and Korea Southern Power (Kospo) to cooperate in infrastructure development projects for a gas plant and liquefied natural gas terminal in Vietnam.
From left: Korea Southern Power President Shin Jung-shik, Hanwha Energy CEO Jung In-sub and Korea Gas Corp. CEO Chae Hee-bong pose for a photo after signing a contract to jointly work on Vietnam’s gas power generation and LNG terminal business at Seoul Plaza Hotel on Thursday. (Hanwha Energy)
The affiliate of Hanwha Group plans to build a terminal for LNG imports and a power plant to produce electricity in Vietnam, where power supply and demand imbalance is a severe problem. In the case of Vietnam’s southern region, although half of the country’s total electricity is consumed there the power generation capacity hovers at 37 percent.
Hanwha Energy said that the need for LNG power planta is on the rise in Vietnam, due to environmental and economic restraints of building facilities that rely on hydropower, coal and nuclear energy.
According to the company, the three firms will form a consortium called Korea Consortium for the joint project.
For the project, Hanwha Energy said it will take the leading role of supervising overall business development and supply of LNG in Vietnam.
The company said Kogas will be responsible of constructing and operating the LNG terminal, as well as providing technical support, while Kospo will also extend its expertise and know-how in construction and operation of the LNG power plants.
“Considering that the energy industry leaders in Korea are collaborating in entering the global market by establishing a consortium based on their expertise in the field and building a foundation for cooperation, our latest agreement is highly symbolic. We are determined to achieve concrete outcomes through the collaboration,” said Hanwha Energy CEO Jung In-sub.