PetroVietnam Gas JSC inked a memorandum of understanding with AES Corporation on November 12, during US President Donald Trump’s state visit to Vietnam.
|Vietnamese and US presidents witnessed the signing ceremony of the two corporations
The signing ceremony was attended by Vietnamese State President Tran Dai Quang, President Trump, and government delegations from both countries.
Under the agreement, AES will work with PetroVietnam Gas JSC (PV Gas) on the Son My liquefied natural gas (LNG) terminal project in the south-central province of Binh Thuan. The LNG import projects, including Son My, play a significant role in the energy industry of Vietnam by diversifying the gas sources, as well as meeting the growing demand for gas and electricity in Vietnam expected in the upcoming years.
“AES has been a committed investor in Vietnam since 2010, and we continue to actively work to develop sustainable energy solutions that will contribute to the country’s economic and social development, including renewables and natural gas,” said Mark Green, president of AES’ Eurasia Strategic Business Unit.
“Integration of multiple sources of energy will help ensure reliability of energy supply as the country continues to grow. With this project, AES plans to leverage our experience and replicate the success of our LNG businesses in Central America and the Caribbean,” he continued.
“AES has been partnering with OPIC [Overseas Private Investment Corporation, the US government’s development finance institution] on various state-of-the-art power generation projects around the world, and is grateful for their expertise and support with this new project in Vietnam.”
The signing ceremony was part of the co-operative activities embarked upon during Trump’s first visit to Vietnam, setting the milestone for a tighter collaboration in economic development between both countries.
Following the signing ceremony, OPIC president and CEO Ray W. Washburne presented a letter of intent to Mark Green. The letter supports the construction of an LNG terminal plant and 2,250-megawatt combined cycle power plant in Vietnam, which will provide around 5 per cent of the country’s power generation capacity and support its continued economic development.
AES Corporation is a Fortune 200 global power company. AES provides affordable, sustainable energy to 16 countries through a diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. AES has a workforce of 18,000, and its 2016 revenue hit $14 billion. The firm owns and manages $36 billion in total assets.
In Vietnam, AES and partners completed the construction of Mong Duong 2 power plant in 2015, safely, on schedule, on budget, and in full compliance with applicable laws and regulations and the expectations of the host government, shareholders, and lenders. Mong Duong 2 has two units with a total gross capacity of 1,242 megawatts and an investment of approximately $2 billion. The plant is expected to add significantly to the national power grid with more than 7.6 billion kilowatt-hours of electricity annually. The plant was constructed under a build-operate-transfer agreement, and will be transferred to the government after 25 years. The plant currently employs over 200 employees, mostly from Vietnam.
Since the construction of Mong Duong 2 in 2011, the company contributes to the socio-economic development of Vietnam by providing reliable and safe energy to power the country and valuable community programmes focusing on health and education. The total social investment of AES is more than VND9 billion ($409,000).
The company is now exploring future opportunities for partnership with Vietnam with a long-term view of ensuring the sustainability of the project’s operations and being able to capture new business opportunities including gas, wind, solar, and energy storage projects in Vietnam.
“This project is in line with OPIC’s initiative to promote the expansion of LNG markets in the Indo-Pacific region,” said Washburne. “We are excited about the opportunity to support AES and look forward to facilitating critical investment into Vietnam’s energy infrastructure hit supply.”
By By Thuy Ngan