An LNG carrier operated by SK Innovation's E&S unit arrives at the Boryeong LNG terminal for the first time on Feb. 23, carrying LNG produced at the Barossa gas field off Australia. [SK Innovation]
An LNG carrier operated by SK Innovation's E&S unit arrives at the Boryeong LNG terminal for the first time on Feb. 23, carrying LNG produced at the Barossa gas field off Australia. [SK Innovation]

SK Innovation has presented Vietnam with a phased energy cooperation plan linking LNG and small modular reactors as the country's power demand surges on the back of rapid AI growth. The plan calls for leveraging US- and Australia-based LNG supply chains in the near term to stabilize power supply, with cooperation expanding into next-generation SMRs over the longer term.

SK Innovation said Wednesday that Chief Executive Chu Hyung-wook visited Vietnam for two days beginning July 16, meeting senior officials from the Ministry of Industry and Trade, state energy company PetroVietnam and its power generation subsidiary PV Power to discuss energy cooperation.

The discussions were grounded in expectations that Vietnam's power demand will climb steeply as AI data centers, semiconductors and other advanced industries expand. Attracting large-scale AI data centers and advanced manufacturing facilities requires a stable power supply base first.

SK Innovation proposed expanding LNG-fired power generation as a practical near-term solution to Vietnam's growing electricity needs. The company plans to supply fuel at competitive prices to Vietnamese gas-fired power projects by drawing on gas field assets and a portfolio of long-term LNG contracts secured in the United States and Australia.

Diversifying supply sources would also help guard against geopolitical risks. Linking US and Australian LNG to Vietnamese power projects would establish a stable fuel procurement framework even amid uncertainty in global energy markets. Chu said the rapid advance of AI will drive an explosive surge in power demand, and that LNG is "the right solution to guarantee energy security for now."

Next-generation SMRs were presented as a stable power source for the medium-to-long term. SK Innovation is working with US-based TerraPower to commercialize Natrium, a Generation IV reactor technology. Natrium pairs a reactor with an energy storage system, allowing flexible response to fluctuations in power demand. SK Innovation is targeting commercial deployment by 2030.

Chu said he hopes to build a long-term partnership with PetroVietnam in the nuclear power sector "after the validation and commercialization of next-generation SMR technology is complete."

SK Innovation is also pursuing an integrated energy and industrial ecosystem linking LNG power plants, industrial complexes and AI data centers, going beyond simply supplying generation capacity and fuel. The company plans to apply a Specialized Energy-Industrial Cluster model — drawing on its ongoing Quynh Lap LNG combined-cycle power project in Vietnam — to attract AI data centers and advanced manufacturing facilities near the plant site.


yeongdai@heraldcorp.com