Hanwha Energy recently met with Vietnam’s Ministry of Industry and Trade to discuss potential energy cooperation, expressing its intention to expand its participation in the country’s liquefied natural gas (LNG) projects. Already involved in the Hai Lang LNG project, Hanwha Energy aims to support Vietnam’s efforts toward energy security and clean energy development through further investments.
According to the Vietnamese Ministry of Industry and Trade on the 16th, Hanwha Energy met on the 15th (local time) with Deputy Minister Nguyen Hoang Long to explore potential collaboration on LNG projects.
Attendees included Deputy Minister Nguyen Hoang Long, officials from the Department of Electricity, the Department of Oil, Gas and Coal, and the Department of Foreign Market Development, as well as Kim Young-wook, Vice President and Head of the Energy Business Division at Hanwha Energy, Choi Young-seon, Executive Director in charge of New Energy, and representatives from Hanwha Energy Vietnam (HECV).
Deputy Minister Long stated, “Trade, industry, and energy cooperation between Vietnam and South Korea is developing positively, especially in the energy sector.” He added that the two countries have been promoting collaboration in areas such as electricity, oil and gas, and clean energy. He also proposed applying the newly adjusted power pricing scheme for LNG-based combined cycle gas turbine (CCGT) power plants and emphasized the importance of project efficiency.
He affirmed that the Ministry would support Hanwha Energy in strengthening cooperation with local companies and would help create opportunities to enhance Vietnam’s energy security.
Hanwha Energy expressed strong interest in further investing in Vietnam’s LNG power generation projects, positioning itself as a reliable partner in the energy sector.
Vice President Kim Young-wook explained, “As a subsidiary of Hanwha Group, Hanwha Energy provides integrated energy solutions, including LNG, energy storage systems (ESS), renewable energy, and combined heat and power (CHP). We bring a wealth of experience and expertise in developing LNG projects.”
During the meeting, Hanwha Energy also shared insights into the global LNG market outlook, pricing trends, the potential for U.S. LNG imports, and developments in Korea’s electricity market.
Vietnam has set a goal of reducing greenhouse gas emissions by 9% by 2030 and achieving carbon neutrality by 2050. As part of this plan, the country aims to increase LNG’s share of power generation to 14.9% (approximately 22,400 MW) by 2030. The 8th National Power Development Plan (PDP8), covering the period from 2021 to 2030, includes five LNG projects, three of which involve transitioning from coal-fired power plants to LNG.
Hanwha Energy is actively expanding its LNG business in Vietnam. The company is part of a consortium with Korea Southern Power, Korea Gas Corporation, and Vietnam’s T&T Group, participating in the Hai Lang LNG project. This initiative includes the construction and operation of a 1.5 GW combined-cycle gas power plant and an LNG terminal in the southeastern economic zone of Quang Tri Province, with a total investment estimated at approximately $1.79 billion. The project is scheduled to begin commercial operations in the second quarter of 2029.
Meanwhile, ahead of its anticipated IPO, Hanwha Energy is expected to achieve a minimum market valuation of $2.14 billion based on the public offering price. Depending on the valuation of its power generation assets and the discount rates applied to its affiliate holdings, securities firms involved in the underwriting process estimate the company’s valuation could range from $2.86 billion to $3.57 billion.
Hanwha Energy, which generates revenue through CHP, solar power, and LNG businesses, holds an 8.62% stake in Hanwha Corporation, a 12.8% stake in Hanwha Systems, and equity in 16 other unlisted affiliates. The company is wholly owned by the three sons of Hanwha Group Chairman: Vice Chairman Kim Dong-kwan (50%), President Kim Dong-won (25%), and Executive Vice President Kim Dong-sun (25%). Hanwha Energy reported stable performance with operating profits of approximately $150.5 million in 2022 and $153.6 million in 2023.
