On 28 October 2020 in Hanoi, representatives of The AES Corporation (NYSE: AES) and Petrovietnam Gas JSC (PV Gas) signed a term sheet for the Joint Venture Agreement for the Son My LNG terminal, which will be located in Binh Thuan Province, in the South-Central region of Vietnam. The signing took place during the third annual Indo-Pacific Business Forum (IPBF), held on October 28 – 29 in Hanoi with the participation of H. E. Pham Binh Minh, Deputy Prime Minister, Minister of Foreign Affairs, H.E. Tran Tuan Anh, Minister of Industry and Trade, H.E. Daniel J. Kritenbrink, US Ambassador to Vietnam and other US and Vietnamese officials.
The Son My LNG terminal has an installed capacity of 450 TBtu and represents a total investment of about $1.4 billion. The terminal is expected to achieve financial completion in 2022 and begin commercial operations in 2025.
The Son My LNG terminal complements AES’ investment in gas infrastructure around the country, with its previously announced $1.8 billion 2.2 GW combined cycle gas turbine (CCGT) power plant. Together, the plant and terminal will play a major role in shaping Vietnam’s energy future by diversifying the energy mix with imported LNG as well as meeting the country’s increasing demand for sustainable and affordable electricity.
“This is an important milestone for the development of the Son My LNG terminal and our CCGT power plant. With these two projects, AES is fully committed to the country’s growth in cleaner energy sources and offering the most reliable and affordable electricity to support the continued economic growth of Vietnam,” said David Stone, President of AES Vietnam.
As part of the signing ceremony, AES also received a Letter of Interest from US’ Eximbank and US’ International Development Finance Corporation (DFC) to support the Son My LNG Terminal and Son My 2 CCGT projects with a loan amount of $3.2 billion.
The AES Corporation is a Fortune 500 global power company and has extensive experience in developing LNG to power projects, including LNG terminals in the Dominican Republic in 2003 and in Panama in 2018, which have been providing a cleaner, more cost-effective and sustainable energy solutions for the Caribbean and Central America.