AES and PV Gas sign joint venture agreement for Son My LNG Terminal

September 23, 2021 | 18:52
Representatives of global energy company AES Corporation and PetroVietnam Gas JSC (PV Gas), a member of Vietnam’s oil and gas giant PetroVietnam, have just signed a joint venture agreement for the Son My liquefied natural gas (LNG) terminal located in Binh Thuan province in south central Vietnam.
AES and PV Gas sign joint venture agreement for Son My LNG Terminal
AES and PV Gas sign a joint venture agreement for Son My LNG Terminal

The event took place in New York during the visit of Vietnam’s State President Nguyen Xuan Phuc for the 76th UN General Assembly and was attended by President Phuc, Vietnam Ambassador to the US Ha Kim Ngoc, Minister of Industry and Trade Nguyen Hong Dien, Minister of Planning and Investment Nguyen Chi Dung, Chairman of the President Office Le Khanh Hai, Minister of Construction Nguyen Thanh Nghi, PetroVietnam chairman Hoang Quoc Vuong, and other Vietnamese officials and members of AES’ senior leadership.

The terminal is expected to achieve financial completion in 2022 and begin commercial operations in 2026.

The Son My LNG terminal has an installed capacity of 450 trillion British thermal units and represents a total investment of about $1.4 billion. The terminal is expected to achieve financial completion in 2022 and begin commercial operations in 2026.

“This is an important milestone for the development of the Son My LNG terminal and the combined cycle gas turbine (CCGT) power plant. The terminal will enable our customers in Vietnam to continue accelerating economic growth by using cleaner, more reliable, and more affordable fuel to transform the energy sector,” said David Stone, president of AES Vietnam.

AES and PV Gas sign joint venture agreement for Son My LNG Terminal
AES and PV Gas exchange the signed agreement for the Son My LNG terminal, witnessed by State President Nguyen Xuan Phuc and other Vietnamese officials

The Son My LNG terminal complements AES’ investment in gas infrastructure around the country, alongside its $1.8-billion 2.2GW CCGT Son My 2 power plant. Together, the plant and terminal will play a major role in shaping Vietnam’s energy future by diversifying its energy mix with imported LNG as well as meeting the country’s increasing demand for sustainable and affordable electricity.

AES was officially granted approval by the Vietnamese government to develop the Son My 2 CCGT power plant on September 30, 2019. The Son My 2 plant will have a 20-year contract with the Vietnamese government.

The AES Corporation has extensive experience in developing LNG-to-power projects, including LNG terminals in the Dominican Republic and Panama. These projects provide cleaner, more cost-effective, and sustainable energy solutions for the Caribbean and Central America.

By Anh Duc

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