What is the primary role assigned to AFRY for this development?

AFRY is serving as the primary technical advisor, tasked with assessing engineering feasibility, reviewing technical designs, and providing strategic advisory services for both the floating LNG import infrastructure and the power generation plant.

Why is Vietnam investing heavily in LNG-to-power infrastructure?

Vietnam is facing a looming energy deficit caused by surging industrial demand, domestic gas field depletion, and international commitments to phase down unabated coal power. LNG-to-power serves as a critical bridge fuel to provide stable baseload electricity while the country expands its renewable energy capacity.

How does an integrated floating LNG-to-power concept operate?

The project uses a floating unit, such as an FSRU, to receive, store, and regasify imported liquefied natural gas offshore. The regasified fuel is then piped directly into a nearby combined-cycle gas turbine power plant to generate electricity for the national grid.

Offshore Energy · August 31, 2026 (9h ago) · 1 min read

Swedish firm picks up work for 1.5 GW LNG-to-power project in Southeast Asia

Analysis

AI-assisted analysis · reviewed by Yuri Kan

AFRY has been appointed as the primary technical advisor for a major 1.5 GW integrated LNG-to-power scheme in Vietnam. The infrastructure setup combines an offshore floating LNG regasification solution with onshore combined-cycle power generation. This mandate reflects the accelerating push across Southeast Asian emerging markets to substitute coal with imported gas to meet surging industrial baseload demand.

Key Facts

Swedish engineering and consultancy firm AFRY was awarded a key technical advisory contract in Vietnam.
The planned LNG-to-power development features a total generation capacity of 1.5 gigawatts (GW).
The project architecture integrates a floating LNG (FLNG/FSRU) import terminal alongside a dedicated gas-fired power station.
AFRY's scope covers technical advisory, engineering validation, and development oversight for the complex.
The initiative is part of Vietnam's broader national power development strategy shifting away from coal-fired generation toward flexible gas baseload.

Background & Context

Vietnam is confronting rapid annual electricity demand growth driven by its expanding manufacturing sector, prompting government targets to diversify the energy mix under its Power Development Plan VIII (PDP8). Domestic offshore gas reserves from legacy fields are naturally declining, creating an urgent supply deficit for existing power plants. Consequently, the country has prioritized LNG import terminals and integrated gas-to-power facilities to secure reliable, lower-carbon baseload energy.

Market Impact

This development underscores the commercial viability of integrated floating regasification solutions in markets with constrained coastal land access and urgent power needs. For international engineering firms like AFRY, securing early-stage advisory mandates positions them favorably for follow-on engineering, procurement, and construction management (EPCM) packages. The project also contributes to tightening global LNG contracting activity as Southeast Asian utilities increasingly seek long-term supply agreements to underpin multibillion-dollar downstream infrastructure.

What to Watch

Key milestones to watch include the final investment decision (FID), the formal selection of the engineering, procurement, and construction (EPC) contractors, and the securing of long-term LNG supply contracts. Stakeholders will also monitor regulatory approvals regarding domestic power purchase agreements (PPAs) and grid interconnection timelines in Vietnam.

Frequently Asked Questions

What is the primary role assigned to AFRY for this development?: AFRY is serving as the primary technical advisor, tasked with assessing engineering feasibility, reviewing technical designs, and providing strategic advisory services for both the floating LNG import infrastructure and the power generation plant.
Why is Vietnam investing heavily in LNG-to-power infrastructure?: Vietnam is facing a looming energy deficit caused by surging industrial demand, domestic gas field depletion, and international commitments to phase down unabated coal power. LNG-to-power serves as a critical bridge fuel to provide stable baseload electricity while the country expands its renewable energy capacity.
How does an integrated floating LNG-to-power concept operate?: The project uses a floating unit, such as an FSRU, to receive, store, and regasify imported liquefied natural gas offshore. The regasified fuel is then piped directly into a nearby combined-cycle gas turbine power plant to generate electricity for the national grid.

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