Vietnam ministry asks AES to revise LNG power project feasibility study per new Electricity Law

AES should revise its feasibility study report for the Son My 2 LNG-to-power plant per the new Electricity Law 2024, says Deputy Minister of Industry and Trade Nguyen Hoang Long.

The 2,250 MW Son My 2, under build-operate-transfer (BOT) format, is jointly invested by the United States’ AES and Petrovietnam subsidiary PV Gas, with an investment of $2.1 billion.

The Prime Minister approved the duo as investors for the project in 2019, while it received in-principle approval from the Ministry of Industry and Trade (MoIT) in 2022.

Long elaborated that the MoIT is drafting guiding decrees for the Electricity Law 2024, including terms for gas-fired power plants. AES should revise its feasibility study report to ensure its law compliance and timely deployment.

Son My 2 LNG-to-power is a key project and a priority of the government, Long noted.

For its part, the AES delegation asked the deputy minister to provide suggestions to speed up the project. The delegation also sought his recommendations to push the stake transfer deal for Mong Duong II thermal power plant in Quang Ninh province.

In July 2024, Vietnam’s south-central coastal province of Binh Thuan reported that two mega LNG-to-power there, Son My 1 and Son My 2, were still drafting feasibility studies despite receiving in-principle approvals years ago.

The two projects are part of an LNG-to-power chain in Binh Thuan province. The chain also features the Son My LNG terminal, Son My power center, a project to connect the Son My power center to the national grid, and the Son My-Phu My gas pipeline project.

Binh Thuan authorities insisted on the projects becoming operational in 2027-2029.