American energy corporation AES has received in-principle approval from the Ministry of Industry and Trade for its VND50,432 billion ($2.11 billion) Son My 2 LNG-to-power project in the south-central province of Binh Thuan.
The built-operate-transfer (BOT) project’s development timeline is from 2023 to 2028. The plant, located in Son My commune, Ham Tan district, features three 750-MW turbines.
It will be fueled by imported LNG supplied from Son My LNG terminal, which is capable of providing gas for power plants with capacities of 4,500 MW.
The industry ministry has asked AES to work with the Electricity and Renewable Energy Authority on the next steps towards project investment.
The corporation has been asked to quickly complete the feasibility report for the project, including further research to ensure accuracy of technical specifications, investment details, electricity production costs, project development timeline, capital arrangement and expected project efficiency.
The ministry and AES had signed a memorandum of understanding on implementing the power project in 2019, during the Vietnam visit of then U.S. Secretary of Commerce Wilbur Ross.
AES Corporation, which owns the 1,242 MW Mong Duong 2 coal-fired power plant in Quang Ninh, is also considering developing a $13 billion offshore wind farm in Binh Thuan.
The corporation had submitted a letter of intent for the 4GW project to the Vietnamese mission attending an annual Vietnam-U.S. energy security dialogue in Washington D.C. in July.
AES and Vietnam's PV Gas in mid May received an investment registration certificate for their $1.4 bln LNG terminal project in Binh Thuan. The terminal will receive, process and supply LNG reprocessed as fuel for Son My 1 and Son My 2 power plants.