Vingroup Abandons Major LNG Power Plant Plan for Renewable Energy Shift

Vingroup has formally proposed to Vietnam's government that it abandon plans to build the country's largest liquefied natural gas (LNG) power plant, according to a document obtained by Reuters. The conglomerate cites soaring LNG prices driven by the Iran war, which has closed the Strait of Hormuz, and damage to Qatar's liquefaction facilities.

The proposed $25 billion alternative is a hybrid renewable energy project combined with a battery energy storage system (BESS). Vingroup's document notes that the LNG plant, once fully operational, would require about 5 million tons of LNG annually, creating significant pressure on Vietnam's foreign exchange needs.

Vingroup is Vietnam's largest conglomerate by market capitalisation but a newcomer to the energy sector. Its subsidiary VinEnergo had begun work on the 4.8 gigawatt plant in Haiphong last September.