Vietnamese conglomerate Vingroup is pivoting from building the country’s biggest LNG-fired power plant to a renewable energy project, Reuters reported on March 31.

The shift comes amid skyrocketing LNG spot market prices in Asia following the outbreak of the conflict in the Middle East. About one-fifth of supply has been taken out of the market with Qatar and the United Arab Emirates unable to deliver cargoes with the Strait of Hormuz blocked by Iran.

It marks a major U-turn from earlier in March when Vingroup selected US energy equipment firm GE Vernova to provide generators and gas turbines for a 4.8 GW LNG-power plant.

The announcement has put all eyes on Vietnam’s LNG sector, as the country had previously been planning to rely heavily on LNG-fired generation intended to serve as a bridge fuel between coal use and its net-zero targets.

Hanoi had been planning on gas-fired LNG power plants accounting for approximately 22 GW of installed capacity by 2030. By 2035, Vietnam had been planning to have over 20 LNG-fired plants operating. Currently, only Nhon Trach 3 and 4 units in Dong Nai province have been commissioned.

However, the government’s previous plans are now in jeopardy as LNG spot prices in Asia have soared by over 90% since Israel and the US first attacked Iran in late February. And with damage to Qatar’s Ras Laffan Industrial City expected to take up to five years to repair, LNG supply could remain tight for some time with inflated prices continuing.

With some LNG projects now appearing unviable, Vingroup has its eyes set on renewables. The company appears set to swap its LNG powered plants for a hybrid renewable energy project combined with a battery energy storage system (BESS).

The type of renewable energy is still to be determined, but the cost of a BESS project has been estimated at $25bn.