VinaCapital Group and GS Energy, partners in the development of the Long An I and II 3,000 MW LNG-to-power plants in the Mekong Delta’s Long An province, signed an MoU on June 23 with the Export-Import Bank of Korea (KEXIM) on financial support for the key projects.

The three parties will explore potential opportunities for KEXIM to provide credit facilities to the Long An Energy Corporation, which is jointly owned by VinaCapital and GS Energy. The signing of the MoU took place on the sidelines of the “Vietnam-Korea Business Forum” held in Hanoi by the Ministry of Industry and Trade.

Mr. Yoon Hee Seong, CEO of KEXIM, said Vietnam is promoting its energy conversion from coal power generation to gas power generation, and orders for large-scale projects are expected in the future. “Since it is a symbolic cooperative project that has obtained business rights from the Vietnamese Government, KEXIM will actively help South Korean companies such as business owners and engineering, procurement, and construction (EPC) contractors participate,” he said.

The Long An power plants will play a critical role in producing clean electricity for all of southern Vietnam and fuel its continued economic growth, according to Mr. Don Lam, CEO and Founding Partner of VinaCapital. “We welcome KEXIM’s potential involvement in this project, which not only underscores its commitment to sustainable development but also the strong ties between Vietnam and South Korea,” he said.

Similarly, Mr. Huh Yong-soo, GS Energy CEO, emphasized that South Korean companies have long understood that investing in Vietnam is mutually beneficial, and GS Energy is proud to be one of the leading foreign investors in the country’s energy sector. “We greatly appreciate KEXIM’s support in this endeavor and welcome the participation of other South Korean companies in this landmark project,” he went on.

The Long An I and Long An II power plants, located in Long An province’s Can Giuoc district, will be fueled by clean-burning liquified natural gas (LNG). When fully operational, the plants will have a combined generating capacity up to 3,000 MW, which will be delivered to the national power grid via a power purchase agreement to be signed with Electricity of Vietnam (EVN).

The project is the first approved conversion from initial coal-fired to advanced clean gas (LNG)-fired power project in Vietnam. It is included in Power Development Plan VIII, officially announced in May. Implementation has been progressing steadily since it received an investment license in March 2021. With estimated capital of over $3 billion, it will effectively contribute to ensuring national energy security in the years ahead.