Deputy PM urges AES Corporation to develop Son My 2 thermal power project

May 18, 2018 | 15:24

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Deputy Prime Minister Vuong Dinh Hue’s urging AES Corporation to implement the Son My 2 gas-fired thermal power project shows Vietnam’s wish to increase investment in gas-fired thermal power plants.

deputy pm urges aes corporation to develop son my 2 thermal power project

David Stone, chairman of AES Vietnam, and Deputy Prime Minister Vuong Dinh Hue

At the meeting with Deputy PM Hue on May 17, chairman of AES Vietnam David Stone stated that the firm is carrying out research for its investment in the Son My 2 BOT gas-fired thermal power project.

The project consists of three power plants using liquefied natural gas, with the designed capacity of 750MW each. Built at the Son My industry-services-gas complex in the central coastal province of Binh Thuan, the facilities are set to become operational in 2023, 2024, and 2025, respectively.

In the framework of the meeting, Stone also mentioned AES’ co-operation with PetroVietnam Gas JSC (PV Gas) to implement the Son My liquefied natural gas (LNG) terminal project in the central province of Binh Thuan. The two parties inked a memorandum of understanding (MoU) to develop the project in November 2017.

The Deputy PM urged both sides to speed up the signing of a partnership contract to implement the LNG project as soon as possible.

Regarding the Son My 2 project, Hue requested AES to work with PV Gas to identify the most suitable investment model, adding that the Vietnamese Ministry of Industry and Trade will directly address difficulties arising during cooperation.

Son My 2 is one of the nine gas-fuelled power projects that the government has assigned PetroVietnam to invest in and one of the three Son My thermal power projects with a total capacity of 4,000MW in the Son My Petroleum Industry Service complex in Son My commune.

Previously, in March, EDF Group from France was granted the investment certificate for the Son My 1 gas-fired thermal power plant. The project includes three units with a total capacity of 2,000MW. The project was approved in the Power Development Planning-VII (adjusted) with the expectation of entering into operation in 2027.

AES Corporation is a Fortune 200 global power company. The firm provides affordable and sustainable energy in 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 established AES-VCM Mong Duong Power Company, a joint venture between AES Corporation (51 per cent), Posco Energy (30 per cent) and China Investment Corporation (19 per cent), to develope the 1,240MW Mong Duong 2 coal-fired thermal power plant in the northern province of Quang Ninh. Mong Duong 2 has two units with a total gross capacity of 1,242MW 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.

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