SK Innovation is pursuing an energy business in Vietnam that links liquefied natural gas (LNG) and small modular reactors (SMRs), targeting growing power demand driven by artificial intelligence (AI) data centers and advanced industries.

In the short term, the company plans to use the LNG supply chain it has secured in the United States and Australia to provide fuel for power generation projects in Vietnam, and in the longer term expand cooperation into next-generation SMR projects.

SK Innovation announced on the 29th that CEO Chu Hyung-wook visited Vietnam on the 16th and 17th and discussed cooperation measures in the energy and advanced technology sectors with officials from the Ministry of Industry and Trade, state-owned energy company PetroVietnam (PVN), and its power generation subsidiary PV Power.

This discussion reflects the outlook that Vietnam’s power demand will rise rapidly as industries with large-scale electricity consumption, such as AI data centers and semiconductors, expand.

SK Innovation believes that a stable power supply base is essential to attract AI data centers and advanced manufacturing facilities. The company assesses that the pace of power infrastructure expansion could affect Vietnam’s future competitiveness and its ability to attract investment in advanced industries.

CEO Chu stated, “Power demand is expected to increase significantly due to the rapid development of AI,” adding, “For the time being, LNG can be a realistic solution to secure energy security.”

To respond to Vietnam’s short-term increase in power demand, SK Innovation has proposed expanding LNG power generation.

Vietnam’s power consumption is rising in line with economic growth and manufacturing expansion, but volatility in international LNG prices and supply is cited as a burden on the expansion of gas-fired power projects.

SK Innovation plans to supply fuel for Vietnam’s power generation projects by utilizing its gas field assets in the United States and Australia and its long-term LNG contracts. By diversifying supply regions, the company aims to reduce dependence on specific countries or regions and to respond to fluctuations in the international energy market.

In the longer term, the company will pursue cooperation with PVN in the field of next-generation SMRs.

SK Innovation is working with U.S. nuclear power company TerraPower to commercialize “Natrium,” a fourth-generation reactor technology. Natrium is a next-generation nuclear power technology designed to combine an energy storage system with the reactor so that output can be adjusted according to changes in power demand.

CEO Chu said, “Once the verification and commercialization of next-generation SMR technology are completed, we look forward to establishing a long-term cooperative relationship with PVN in the nuclear power sector.”

PVN is also expanding its business portfolio beyond oil and gas into LNG power generation, renewable energy, and nuclear power. If the technological viability and economic feasibility of next-generation SMRs are confirmed, discussions on nuclear power cooperation between the two companies are likely to become more concrete.

SK Innovation is also pursuing the establishment of an integrated energy and industrial ecosystem that links LNG power plants with industrial complexes and AI data centers, going beyond fuel supply and power plant construction.

Based on the Quang Ninh LNG combined-cycle power plant project currently under way in Vietnam, the company plans to apply a specialized energy and industrial cluster model that attracts AI data centers and advanced manufacturing facilities near the power plant.

The company explained that if large-scale power consumers are located near the power plant, the stability of the power generation business can be enhanced, while Vietnam can expand investment, employment, and technology transfer in advanced industries.

SK Innovation intends to expand the scope of cooperation with Vietnam beyond LNG power generation to include renewable energy and energy storage systems in the future.

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