Royal Group's planned liquefied natural gas (LNG) power plant and special economic zone (SEZ) in Koh Kong province are expected to strengthen electricity supply, attract manufacturing investment and create employment opportunities, as Cambodia continues to develop its industrial and energy infrastructure. Valued at more than US$1 billion combined, the two projects are located in Thma Sor commune, Botum Sakor district, with construction having started in late 2024 and power generation and related operations expected to be phased in between late 2026 and 2027.
Key Facts
Developer: Royal Group.
Combined project value: More than US$1 billion.
Location: Thma Sor commune, Botum Sakor district, Koh Kong province.
Power plant capacity: Planned 900 megawatts (MW).
Power technology: Liquefied natural gas (LNG).
Industrial development: Special economic zone targeting domestic and foreign manufacturers.
Construction began: Late 2024.
Expected operational timeline: Phased implementation between late 2026 and 2027.
Expected benefits: Electricity generation, industrial investment and employment creation.
Royal Group Develops Two Major Projects in Koh Kong
The two developments form part of Royal Group's investment activities in Koh Kong province and are expected to support the area's industrial and economic development.
Located in Thma Sor commune, Botum Sakor district, the projects combine energy infrastructure with industrial development.
The planned LNG power plant is designed to increase Cambodia's domestic electricity generation capacity, while the accompanying SEZ is intended to attract manufacturers seeking industrial locations with access to reliable power and supporting infrastructure.
Project representatives said the combination of electricity supply and industrial facilities could strengthen Koh Kong's appeal as an investment destination.
900MW LNG Power Plant to Strengthen Electricity Supply
The planned 900MW LNG power plant is expected to contribute to Cambodia's domestic electricity generation capacity and help reduce reliance on imported electricity.
During a recent site visit, Bou Chanphirou, Director General of the Insurance Regulator of Cambodia, said the facility would complement the country's existing hydropower and solar energy resources.
He added that the project could contribute to a more stable national electricity supply.
The development is significant because electricity availability and reliability are important considerations for industrial expansion, manufacturing operations and long-term investment planning.
The project is expected to introduce additional generation capacity into Cambodia's power system once completed and operational.
However, the announcement does not provide details on the plant's LNG supply arrangements, electricity purchase agreements, expected annual generation or projected power tariffs.
Special Economic Zone Targets Domestic and Foreign Manufacturers
Alongside the power plant, Royal Group is developing a special economic zone within the sustainable-use zone of Botum Sakor National Park.
The SEZ is intended to attract both Cambodian and international manufacturers, creating opportunities for industrial activity and investment in Koh Kong.
Special economic zones can provide a structured environment for businesses to establish manufacturing operations, supported by industrial infrastructure and investment facilitation arrangements.
The combination of a large-scale power project and an industrial zone could offer an advantage for companies that require substantial and dependable electricity supplies.
For Koh Kong, attracting manufacturers could also generate demand for logistics, transportation, construction, maintenance and other supporting services.
The project representatives said the industrial and energy developments could strengthen the province's position as an investment destination.
Projects Expected to Create Jobs During Construction and Operations
The two developments are expected to generate employment opportunities during both construction and operational phases.
Potential positions identified by project representatives include:
Engineers.
Technicians.
Skilled construction workers.
Machine operators.
Administrative personnel.
Beyond direct employment, the projects could create indirect opportunities for local suppliers, contractors, transport operators and service providers.
The scale of these opportunities will depend on construction progress, the eventual number of companies operating in the SEZ and the workforce requirements of the power plant.
The announcement did not provide a specific employment target or the expected number of Cambodian workers to be recruited.
Construction Timeline: Operations Expected Between Late 2026 and 2027
Construction of the projects began in late 2024.
According to the report, power generation and related operations are expected to be introduced in phases between late 2026 and 2027.
This phased timeline suggests that the projects will move towards operational activity progressively rather than necessarily becoming fully operational at the same time.
Further details about individual construction milestones, commissioning schedules and the opening of the SEZ were not provided.
Angkor Times Analysis: Energy Infrastructure Could Shape Koh Kong's Industrial Investment Prospects
The combination of a planned 900MW LNG power plant and a manufacturing-focused SEZ represents a significant infrastructure development for Koh Kong.
The strategy links two important factors in industrial investment: electricity availability and access to industrial locations.
For manufacturers, reliable electricity is essential for production planning, machinery operation and cost management. A large power facility located alongside an industrial zone could therefore help make the area more attractive to energy-intensive businesses, provided that electricity supply, transmission infrastructure and commercial arrangements are competitive.
The development could also expand Koh Kong's economic activity beyond its existing sectors by creating opportunities in manufacturing, logistics, engineering and industrial services.
However, several factors will determine the projects' long-term contribution.
First, power supply and commercial competitiveness. The plant's contribution will depend on its commissioning, LNG procurement arrangements, electricity tariffs and integration into Cambodia's national grid.
Second, investment attraction. The SEZ's success will depend on whether it secures manufacturers with credible investment plans, creates sustainable employment and develops supporting infrastructure.
Third, environmental management. The SEZ's location within the sustainable-use zone of Botum Sakor National Park makes environmental safeguards, land-use compliance and responsible development important considerations.
Fourth, local economic participation. Training programmes and recruitment opportunities for Cambodian workers could help ensure that the projects generate wider benefits for communities in Koh Kong.
The combined investment value of more than US$1 billion signals the scale of the development, but the actual economic impact will become clearer as construction advances, the power plant enters operation and manufacturers begin establishing businesses in the SEZ.
Frequently Asked Questions
1. What projects is Royal Group developing in Koh Kong?
Royal Group is developing a planned 900MW LNG power plant and a special economic zone in Thma Sor commune, Botum Sakor district.
2. How much are the projects worth?
The combined value of the two projects is reported to exceed US$1 billion.
3. What is the planned capacity of the power plant?
The LNG power plant is designed to have a generation capacity of 900 megawatts.
4. Where are the projects located?
They are located in Thma Sor commune, Botum Sakor district, Koh Kong province.
5. What is the purpose of the special economic zone?
The SEZ is intended to attract domestic and foreign manufacturers and support industrial investment in Koh Kong.
6. How many jobs will the projects create?
The projects are expected to generate employment for engineers, technicians, skilled workers, machine operators and administrative staff. A specific job target has not been announced in the report.
7. When did construction begin?
Construction began in late 2024.
8. When are the projects expected to become operational?
Power generation and related operations are expected to be phased in between late 2026 and 2027.
9. How could the power plant benefit Cambodia?
The planned facility is expected to increase domestic electricity generation capacity, complement existing hydropower and solar resources, and help reduce reliance on imported electricity.