HÀ NỘI — Representatives of the AES Corporation (NYSE: AES) and Petrovietnam Gas JSC (PV Gas) have signed a term sheet for the Joint Venture Agreement for the Sơn Mỹ Liquefied natural gas (LNG) terminal, which will be located in Bình Thuận Province in the South-Central region of Việt Nam.
The signing took place during the third annual Indo-Pacific Business Forum (IPBF), held on October 28 – 29 in Hà Nội which was attended by Deputy Prime Minister and Minister of Foreign Affairs Phạmm Bình Minh, Minister of Industry and Trade Trần Tuấn Anh, US Ambassador to Việt Nam Daniel J. Kritenbrink and other US and Vietnamese officials.
The Sơn Mỹ LNG terminal has an installed capacity of 450 TBtu and represents a total investment of around US$1.4 billion. The terminal is expected to achieve financial completion in 2022 and begin commercial operations in 2025.
The terminal complements AES’ investment in gas infrastructure nationwide, with its previously announced $1.8 billion 2.2 GW combined cycle gas turbine (CCGT) power plant. Together, the plant and terminal will play a major role in shaping Việt Nam’s energy future by diversifying the energy mix with imported LNG as well as meeting the country’s increasing demand for sustainable and affordable electricity.
“This is an important milestone for the development of the Son My LNG terminal and our CCGT power plant. With these two projects, AES is fully committed to the country’s growth in cleaner energy sources and offering the most reliable and affordable electricity to support the continued economic growth of Việt Nam,” said David Stone, President of AES Vietnam.
As part of the signing ceremony, AES also received a Letter of Interest from US’ Eximbank and US’ International Development Finance Corporation (DFC) to support the Son My LNG Terminal and Son My 2 CCGT projects with a loan amount of $3.2 billion.
The AES Corporation is a Fortune 500 global power company and has extensive experience in developing LNG to power projects, including LNG terminals in the Dominican Republic in 2003 and in Panama in 2018, which have been providing a cleaner, more cost-effective and sustainable energy solutions for the Caribbean and Central America.
About AES Vietnam
The vision of AES Vietnam is to be a leading sustainable power company in Việt Nam that provides safe, reliable and affordable energy.
In November 2017, AES signed an MOU with PV Gas in the presence of US President Donald J. Trump and Việt Nam President Trần Đại Quang to develop the $1.3-billion Sơn Mỹ LNG Terminal Project. In November 2019, AES also signed an MOU with the Ministry of Industry and Trade to develop a 2.2GW combined cycle gas turbine (CCGT) power plant under the BOT scheme, which will be located in Bình Thuận Province.
AES, through its subsidiary, AES Mong Duong Power Company Limited has successfully developed and arranged financing for the Mong Duong 2 Power Project of 1,242 MW with total investment of approximately $2.1 billion. This is Việt Nam's first Build – Operate – Transfer coal-fired power project, representing approximately 2.3 per cent of the country’s installed capacity. To learn more, please visit https://aesmongduong.vn/
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global power company. It provides affordable, sustainable energy to 14 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Its workforce is committed to operational excellence and meeting the world’s changing power needs. The corporation's 2019 revenues were $10 billion and we own and manage $34 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp. — VNS
