AES, PV Gas Sign Vietnam LNG MoU

US-based AES Corporation and state-run Petrovietnam Gas have signed an agreement to develop the Son My LNG terminal in Vietnam, Petrovietnam Gas said on October 28 in a statement.

AES was granted approval by Vietnam’s government last year to develop a 2.2-GW combined cycle gas turbine (CCGT) power plant in the south-central Binh Thuan province. The Son My 2 plant will have a 20-year power purchase contract with the government and is expected to achieve financial close in 2021 and begin commercial operations in 2024.

Petrovietnam Gas said that the terminal would help meet demand for gas and power in the southern economic region and the whole country in general. The terminal will be developed in three phases.

Vietnam’s industry and trade ministry last month said that the demand for LNG in the country’s power sector was expected to reach 8.5mn metric tons/year by 2030. At present, Vietnam does not import any LNG. The southeast Asian country is promoting gas-fired power as it moves away from coal and oil-based generation.