GS Energy, the energy unit of GS Group, said Thursday that it has signed a deal with Vietnam’s VinaCapital to build a liquefied natural gas power plant there.

Through the collaborative partnership, the two firms will build a megasized LNG power plant with total capacity of 3 gigawatts in the southern region of Vietnam. All electricity generated from this power plant will be provided nationwide via a power purchase agreement with Vietnam’s state-run power company Vietnam Electricity. 

The memorandum of understanding signing ceremony was attended by GS Energy President Huh Yong-soo and VinaCapital CEO Don Lam, which took place at Grand Hyatt Hotel in Seoul on Thursday. 

GS Energy said its experience in the sector of not only the LNG development, but LNG trading and LNG acquisition business, has allowed them to accumulate business know-how of the “LNG value chain.” 

The company said based on the electricity business operation expertise, it hopes to contribute to solving Vietnam’s power shortage-related issues.

“The government’s active support including the New Southern Policy has significantly helped us to clinch the latest strategic deal with VinaCapital,” said GS Energy President Huh Yong-soo. 

The company also said that it will expand its core businesses, including petrochemistry, resources development and integrated energy supply in overseas markets. 

By Kim Da-sol (ddd@heraldcorp.com)