AES’s $2.1 bln LNG power project needs solutions to meet deadline: Vietnam authorities

The 2,250-MW Son My 2 LNG-fired power project, invested by the U.S.'s AES and state-run Petrovietnam subsidiary PV Gas, “needs solutions” to meet its deadline.

According to the latest draft amendment to the country's power development plan VIII (PDP 8), Vietnam will have 21 LNG-fired power projects under the “prioritized” list. ,

The list features 13 projects for the 2025-2030 period and eight for the 2031-2035 period. Son My 2, located in the south-central province of Binh Thuan, is a $2.1 billion project in the 2025-2030 period.

For the 2025-2030 period, six projects, including Son My 2, “need solutions” to meet the deadline, says the draft.

Others are the 2,250-MW Son My 1, 3,200MW LNG Bac Lieu, 1,500-MW LNG Nghi Son, 1,500-MW LNG Ca Na, and 1,500-MW LNG Quynh Lap.

Seven projects without such a deadline notification are the 1,500-MW LNG Quang Ninh, 1,500-MW LNG Thai Binh, 1,500-MW LNG Quang Trach II, 1,500-MW phase 1 of LNG Hai Lang, 1,624-MW Nhon Trach 3 and Nhon Trach 4, 1,200-MW phase 1 of LNG Hiep Phuoc, and 1,500-MW LNG Long An 1.

Until 2030, Vietnam aims to increase its electricity capacity to 183,291-236,363 MW. With 22,254 MW, LNG-fired power is expected to account for 9.5-12.3% of the total.

AES earned a pre-tax income of $34 million from the Mong Duong 2 coal-fired power plant in Vietnam’s northern province of Quang Ninh in 2024, according to AES’s 2024 performance review.

In November 2023, the company entered into an agreement to sell its 51% stake in the power factory to Czech-based Sev.en Global Investments. In its latest performance review, AES said the sale is now subject to regulatory approval and is expected to close by early 2026.

AES is expanding its activities to LNG-fired power. In 2023, Vietnam's south-central province of Binh Thuan granted in-principle approvals to AES for the latter's $1.4 billion Son My LNG Terminal project and the 2,250 MW-Son My 2 combined cycle gas turbine power plant project worth $2.1 billion. The projects are reporting slow progress.