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AES Vietnam and PV GAS Ink Term Sheet of the Joint Venture Agreement for Sơn Mỹ LNG terminal

Update: October, 28/2020 - 16:56
The signing takes place during the third annual Indo-Pacific Business Forum (IPBF), held on October 28 – 29 in Hà Nội. Photo courtesy of the AES Vietnam

HÀ NỘI — Representatives of the AES Corporation (NYSE: AES) and Petrovietnam Gas JSC (PV Gas) have signed a term sheet for the Joint Venture Agreement for the Sơn Mỹ Liquefied natural gas (LNG) terminal, which will be located in Bình Thuận Province in the South-Central region of Việt Nam.

The signing took place during the third annual Indo-Pacific Business Forum (IPBF), held on October 28 – 29 in Hà Nội which was attended by Deputy Prime Minister and Minister of Foreign Affairs Phạmm Bình Minh, Minister of Industry and Trade Trần Tuấn Anh, US Ambassador to Việt Nam Daniel J. Kritenbrink and other US and Vietnamese officials.

The Sơn Mỹ LNG terminal has an installed capacity of 450 TBtu and represents a total investment of around US$1.4 billion. The terminal is expected to achieve financial completion in 2022 and begin commercial operations in 2025.

The AES Corporation (NYSE: AES) and Petrovietnam Gas JSC (PV Gas) have signed a term sheet for the Joint Venture Agreement for the Sơn Mỹ Liquefied natural gas (LNG) terminal, to be located in Bình Thuận Province in the South-Central region of Việt Nam. Photo courtesy of the AES Vietnam

The terminal complements AES’ investment in gas infrastructure nationwide, 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 Việt Nam’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 Việt Nam,” 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.

An overview of Indo-Pacific Business Forum (IPBF), held on October 28 – 29 in Hà Nội. Photo courtesy of the AES Vietnam

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.— VNS

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