SK Innovation Targets Vietnam's Rising AI Power Demand... Proposes Phased LNG and SMR Cooperation

Responding to Short-Term Power Shortages via LNG Supply Chains from the US and Australia
Expanding SMR Cooperation and Linking AI Data Centers with Industrial Parks

SK Innovation has proposed a phased energy cooperation plan for Vietnam, where electricity demand is rapidly increasing due to the growth of artificial intelligence (AI) and advanced industries. The plan involves linking liquefied natural gas (LNG) and small modular reactors (SMRs). In the short term, SK Innovation aims to support stable electricity supply using an LNG supply chain based in the United States and Australia, while in the long term, it plans to expand cooperation to include next-generation SMR technology.

SK Innovation CI.

SK Innovation CEO Chey Hyungwook visited Vietnam on July 16 and 17 and met with officials from the Ministry of Industry and Trade, the state-owned energy company PetroVietnam (PVN), and its power generation subsidiary PV Power, to discuss cooperation in the energy and advanced industry sectors, the company announced on July 29.

SK Innovation anticipates that Vietnam’s electricity demand will surge due to the expansion of AI data centers and semiconductor industries. The company proposed leveraging its gas field assets and long-term LNG contracts secured in the United States and Australia to supply fuel stably and at competitive prices. It also plans to diversify its supply chain to address geopolitical risks and volatility in global LNG prices.

CEO Chey stated, "With the explosive increase in electricity demand expected from AI advancement, LNG will be a practical alternative that supports energy security for the time being. Once next-generation SMR technology is validated and commercialized, I look forward to establishing a long-term partnership with PVN in the nuclear energy sector as well."

SK Innovation is working with TerraPower in the United States to commercialize a fourth-generation reactor called ‘Natrium.’ Natrium combines a nuclear reactor with an energy storage system (ESS), enabling flexible responses to changes in electricity demand. The company is pursuing development with a target of commercial operation by 2030.

SK Innovation's role in Vietnam goes beyond power generation and fuel supply. Building on the ongoing Quang Ninh LNG combined cycle power plant project, the company is also aiming to establish a specialized energy and industry cluster (SEIC) that connects power plants, AI data centers, and industrial parks. Over the long term, SK Innovation plans to expand cooperation beyond LNG power to encompass renewable energy and energy storage systems (ESS).

This content was produced with the assistance of AI translation services.