Cambodia to Open Bidding for First 900MW LNG Power Plant
On July 24, Minister of Mines and Energy Keo Rottanak announced that Cambodia's first 900-megawatt liquefied natural gas (LNG) power plant will be opened for bidding to select fuel suppliers and shippers, with international LNG suppliers already expressing interest. Located in the Botum Sakor district of Koh Kong province, construction of the plant began in October 2024, with operations scheduled to commence with Phase 1 (450 MW) by the end of 2026, followed by Phase 2 (450 MW) in 2027.
Developed by Cambodian conglomerate Royal Group and overseen by the Ministry of Mines and Energy, the bidding process has already attracted interest from potential suppliers in the United States, Canada, Australia, several Southeast Asian countries, and the Middle East. Opportunistically, the tender offer presents suppliers a new—but competitive—LNG market to expand into. Accordingly, the award criteria will prioritize price competitiveness and the reliability of supply; these factors may favor suppliers with diversified international portfolios and established regional delivery networks, especially companies able to leverage flexible supply arrangements and regional partnerships to offer competitive delivery terms.
The plant reflects Cambodia's strategy of combining renewable energy generation and LNG export as part of its transition away from coal. Particularly, the 900-megwatt LNG plant will account for part of the remaining 30 percent of the country's energy mix, while renewable sources—solar, wind, hydropower, and biomass—are expected to supply the targeted 70 percent. Such LNG integration alongside renewable energy sources reflects the country's broader effort to enhance energy security through diversification, stemmed from concerned volatility in global energy markets following disruptions to energy supply chains and conflict-driven increases in energy prices. Although it remains a fossil fuel subject to market and geopolitical risks, Rottanak has emphasized LNG as a cleaner transitional fuel that can support Cambodia’s grid reliability alongside renewables—rather than prolonging its reliance on coal.
