SK Innovation Proposes LNG and Small Modular Reactor Cooperation in Vietnam

South Korea's SK Innovation has proposed a phased energy cooperation plan for Vietnam, initially using liquefied natural gas (LNG) power generation to ensure electricity supply, and later expanding to next-generation nuclear energy technologies such as small modular reactors (SMRs), in response to growing electricity demand driven by Vietnam's artificial intelligence and high-tech industry development.

On July 29, SK Innovation announced that its CEO, Choo Hyeong-wook, visited Vietnam from the 16th to the 17th and met with officials from the Ministry of Industry and Trade, Vietnam Oil and Gas Group (PVN), and its power generation subsidiary, PetroVietnam Power Corporation (PV Power), to discuss cooperation in the energy and high-tech sectors.

According to SK Innovation's assessment, as industries such as AI data centers and semiconductors accelerate development in Vietnam, local electricity demand will continue to rise. The company suggested that in the short term, LNG power generation applications could be expanded, while in the long term, cooperation could extend to the field of small modular reactors.

In the LNG sector, SK Innovation plans to utilize its natural gas field assets in the United States and Australia, along with a series of signed long-term LNG contracts, to provide fuel support for Vietnam's gas-fired power projects. This plan aims to diversify the fuel supply chain, reduce geopolitical risks, and establish a more stable fuel procurement system.

In the nuclear energy sector, SK Innovation intends to seek long-term cooperation around the "Natrium" small modular reactor technology. This technology, developed by SK Innovation in partnership with U.S.-based TerraPower, falls under the direction of Generation IV reactor technology and adopts a design combining a sodium-cooled fast reactor with an energy storage system to more flexibly match changes in electricity demand. SK Innovation plans to commercialize related businesses by 2030.

Choo Hyeong-wook stated that as AI development drives rapid growth in electricity demand, LNG can serve as a viable solution for ensuring energy security in the current phase. He also expressed expectations for establishing a long-term partnership with PVN in the nuclear power sector once the small modular reactor technology is validated and commercialized.

Additionally, SK Innovation plans to leverage the under-construction Quynh Lap LNG combined-cycle power plant project in Vietnam as a foundation to introduce a specialized energy industry cluster model, attracting AI data centers and advanced manufacturing facilities to be located around the plant.