Petrovietnam seeks LNG cooperation with AES, Cheniere Energy

State-owned Petrovietnam are seeking further cooperation with American businesses, including AES and Cheniere Energy, in LNG-fired power and LNG supply.

Delegations of Petrovietnam had discussions with the American partners on the sidelines of Vietnamese Party chief and State President To Lam’s recent working trip in the U.S., according to Sunday statements of Petrovietnam.

AES

Regarding AES and AES-invested Son My power complex (Son My LNG terminal and Son My 2 LNG-to-power plant), Petrovietnam updated that feasibility studies of the two projects have been submitted to the Ministry of Industry and Trade for comments and approvals.

At the meeting with Petrovietnam, AES executive vice president Juan Ignacio Rubiolo said AES is committed to making long-term investments in Vietnam and helping the country with energy transition and green economy.

AES strives to collaborate with Petrovietnam, Petrovietnam subsidiary PV Gas, and state utility Vietnam Electricity (EVN) in supplying clean energy for industrial projects, he added.

In reply, Petrovietnam chairman Le Manh Hung said the Prime Minister has approved a plan to restructure Petrovietnam as a giant in the oil-gas sector, with a bigger focus on clean and renewable energy, such as offshore wind power, hydrogen and low-carbon emission energy. Petrovietnam also seeks collaboration with AES for such a move.

The 2,250 MW Son My 2, implemented under the BOT format, is jointly invested by the U.S.’s AES and PV Gas, with an investment of $2.1 billion. The investors were approved by the Prime Minister in 2019 and the project received in-principle approval from the trade ministry in 2022.

In July 2023, a joint venture between American energy firm AES Corporation and PV Gas was granted in-principle approval for its $1.4 billion Son My LNG Terminal project by Binh Thuan province authorities.

The terminal, to be built by 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.

Cheniere Energy

Petrovietnam and PV Gas also highlighted the market potential in Vietnam, as the country records pacey economic growth and growing energy demand. LNG is regarded as a key source to ensure energy security with lesser environmental impacts versus other fossil fuels, the delegation added.

PV Gas seeking American partners for LNG supply is a strategic move to ensure Vietnam's energy security and green-sustainable growth, according to Petrovietnam.

In reply, Cheniere Energy highlighted it is the second-biggest LNG producer and the fourth-biggest LNG supplier in the world, and the business is willing to establish a long-term cooperation with PV Gas for a stable LNG supply with stable prices.