KOGAS, Vietnamese firms to jointly undertake major infra projects

South Korea's state-run Korea Gas Corp. (KOGAS) has announced a partnership with Vietnamese firms, kickstarting a major infrastructure project following South Korean President Yoon Suk Yeol's state visit to the Southeast Asian country.

The firm declared on Monday that it had signed a memorandum of understanding (MOU) on June 23 with PV Power, a state-run power corporation in Vietnam, and local partner T&T Group.

Under this partnership, KOGAS, alongside its Vietnamese counterparts, plans to uncover opportunities in Vietnam's Gas to Power (GTP) projects, Liquefied Natural Gas (LNG) terminal-associated initiatives, and the hydrogen business. These initiatives aim to bolster Vietnam's long-term power development strategy.

The GTP business venture involves the supply and sale of electricity generated from combined heat and power systems that utilize natural gas as fuel. This expansive infrastructure project encompasses the procurement of LNG, the main raw material, and the development and operation of LNG terminals and power plants.

In addition to Vietnam, KOGAS is forging ahead with GTP projects in other Southeast Asian countries, including Thailand, by creating partnerships with local firms as well as domestic power and energy companies. With the MOU signed during President Yoon's state visit, KOGAS intends to spearhead additional GTP initiatives in Vietnam.

Meanwhile, the 1.5GW Hai Lang GTP project in Vietnam's Quang Tri province, with KOGAS as a participant, has been finalized under Vietnam's 8th power development scheme in May. KOGAS anticipates an annual revenue surpassing 1 trillion won ($766 million) if the project commences its commercial operation by the end of 2028.

Write to Sul-Gi Lee at surugi@hankyung.com