A joint venture between American energy firm AES Corporation and Petrovietnam subsidiary PV Gas was granted investment policy approval for its $1.4 billion Son My LNG Terminal project by authorities in Binh Thuan province on Tuesday.
The terminal, to be built by the Son My LNG Terminal Project Company in the south-central province, will have an installed capacity of 450 TBtu and is expected to begin commercial operations in 2027, AES said in a release.
“The investment policy approval for Son My LNG Terminal is a significant milestone that enables us to move forward with the development of this critical infrastructure project," said Joseph Uddo, president of AES Vietnam.
"With more than 12 years of operations in Vietnam, AES is committed to accelerating the future of energy through important projects like this. We are pleased to receive approval from the Binh Thuan People’s Committee and excited to partner with PV Gas on this strategic project that will contribute to Vietnam’s energy transition and economic growth,” he added.
U.S. Ambassador to Vietnam Marc E. Knapper said: “The Son My project will bring energy security to Vietnam in the transition to cleaner sources of energy. I am happy to see a world class U.S. company like AES as a partner of choice for PV Gas and the Government of Vietnam.”
The Son My LNG terminal project, together with AES’s 2.2 GW Son My 2 combined cycle gas turbine (CCGT), represents a multibillion-dollar investment. Son My 2 CCGT, which received investment policy approval earlier this year, will bring safe and reliable energy to power growth in Vietnam while supporting the transition to cleaner and greener technologies.
AES, a Fortune 500 global energy company, signed a memorandum of understanding (MoU) with PV Gas to develop the Son My LNG Terminal Project in November 2017.
In November 2019, AES signed an MoU with the Ministry of Industry and Trade to develop a 2.2 GW combined cycle gas turbine (CCGT) power plant under the BOT scheme, which will be located in Binh Thuan province.
In October 2020, AES Vietnam and PV GAS signed a Term Sheet of the Joint Venture Agreement for the Son My LNG terminal. Together, the CCGT and terminal are expected to play a major role in shaping Vietnam’s energy future by diversifying the energy mix with imported LNG and meeting the country’s increasing demand for sustainable and affordable electricity.
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