PV GAS, AES Corporation sign LNG terminal deal

09:00 | 11/11/2020 Companies

(VEN) - On the sidelines of the Indo-Pacific Business Forum held on October 28 in Hanoi, the PetroVietnam Gas Joint Stock Company (PV GAS) and the US-based AES Corporation signed a term sheet for the US$1.4 billion joint venture agreement on developing the Son My Liquefied Natural Gas (LNG) terminal. The signing ceremony was held online due to the Covid-19 pandemic.

pv gas aes corporation sign lng terminal deal

Vietnamese and US officials and PVN leaders hail the successful signing ceremony

The event was attended by Deputy Prime Minister and Minister of Foreign Affairs Pham Binh Minh, Chair of the Vietnam Chamber of Commerce and Industry Vu Tien Loc, Vietnam Oil and Gas Group (PVN) President and CEO Le Manh Hung, PV Gas General Director Duong Manh Son, and US Ambassador to Vietnam Daniel J. Kritenbrink.

pv gas aes corporation sign lng terminal deal
PV Gas General Director Duong Manh Son speaks at the signing ceremony

PV GAS General Director Duong Manh Son and Executive Vice President and Chief Operating Officer of the AES Corporation Bernerd Da Santos inked the deal.

PV GAS and AES negotiated the main terms of the joint venture agreement on the basis of a November 2017 Memorandum of Understanding.

Speaking at the signing ceremony, General Director Duong Manh Son thanked the government, PVN and related ministries and sectors for their support. He hailed the efforts of the negotiation teams from both sides and said he believed the joint venture agreement will be signed soon. He also affirmed that the Son My LNG Import Terminal Project will ensure gas and power supply for the southern key economic zone in particular and the country in general, as well as national energy security.

pv gas aes corporation sign lng terminal deal
The online signing ceremony broadcast from Vietnam and the US

The LNG Son My Import Terminal Project is part of the LNG gas power project chain in the southern coastal province of Binh Thuan, with storage capacity of three million tonnes a year (for phase 1 and up to six million tonnes in the next phase). It will receive, process and supply recycled LNG gas as fuel for Son My 1 and Son My 2 power plants from 2024, supplementing gas shortages in southern Vietnam, where domestic gas sources are expected to start declining in 2023.

AES is an energy corporation headquartered in the US state of Virginia and is a Fortune 500 global power company. It has extensive experience in developing LNG for power projects, distributing power around the world and building gas industry infrastructure. In Vietnam, AES has invested in the Mong Duong 2 Coal Power Plant project with a capacity of 1,150 MW in Quang Ninh Province. The government has also approved an AES investment in the Son My 2 Power Plant project using LNG and capital contribution with PV GAS for the Son My LNG Import Terminal Project.

pv gas aes corporation sign lng terminal deal
Announcement ending the signing ceremony

Ngan Kim