PV GAS signs Memorandums of Understanding with US partners

The signing ceremony was witnessed by President of the Socialist Republic of Vietnam Tran Dai Quang and President of the United States Donald Trump and the delegations of both countries’ governments. The ceremony was held in the presence of Le Nhu Linh, Chairman of the Board of PV GAS, Duong Manh Son, President and CEO of PV GAS; from the AES Corporation - Mark Green, President - EurAsia, David Stone, President - AES Vietnam, Nguyen Hai Long, Business Development Director - AES Corp; and from the Alaska Gasline Development Corporation - Keith Meyer, President, Leiza Wilcox, Vice President.

The two Memorandums of Understanding between PV GAS and the US partners are:

1. The Memorandum of Understanding (MoU) relating to the Son My LNG terminal project between the AES Corporation and the PetroVietnam Gas Joint Stock Corporation. The MoU expresses AES’s interest in collaborating with PV GAS in developing the Son My LNG terminal project.

2. The Memorandum of Understanding (MoU) for collaboration on LNG supply and upstream investment among the PetroVietnam Gas Joint Stock Corporation and the Alaska Gasline Development Corporation. The MoU expresses AGDC’s interest in collaboration with PV GAS in participating in supplying LNG for LNG import projects in Vietnam as well as in studying and evaluating the opportunities of PV GAS in investing in and developing gas fields in the State of Alaska, the US.

The LNG import projects including the Son My LNG terminal project play a significant role to PetroVietnam/PV GAS in particular and to the energy industry of Vietnam in general by diversifying gas sources as well as meeting the growing demand for LNG/ gas and electricity in Vietnam in the years to come for the benefit of the national energy security and food security.

The signing of the MoUs with the US partners relating to the development of the terminal and the supply of LNG for LNG import projects in Vietnam would bring about new opportunities for PetroVietnam/ PV GAS to establish the collaborative relationships with more potential partners in the LNG field.

The MoUs signing ceremony is part of the remarkable collaborative activities during the very first visit to Vietnam of US President Donald Trump, setting a milestone for tighter collaboration in economic development between the US and Vietnam in the coming time.

AES is a US corporation in the field of generating and distributing electric power such as thermal and renewable energy. AES is a Fortune 200 global power company.

Currently, AES provides affordable, sustainable energy to 17 countries through diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. AES’s 2016 revenues were US$13.6 billion and AES owns and manages US$36 billion in total assets. AES built 111 generation facilities with the total capacity of 36GW of diversifying fuel types, including coal, diesel, hydro, gas, LNG, oil, wind, solar and biomass. AES also has seven subsidiaries which are power generators and distributors in several regional markets.

In Vietnam, AES through its subsidiary completed the construction of the Mong Duong 2 BOT thermal power plant with the capacity of 1,240MW and the loan of US$ 1.46 billion. This project was completed and came into commercial operation since April 2015.

The Alaska Gasline Development Corporation (AGDC) is an independent, public corporation of the State of Alaska operating in the field of financing and developing gas projects. AGDC is wholly owned by the State of Alaska and is the sole owner of the Alaska LNG project.

The Alaska LNG project has the feed gas from the gas fields in Alaska with the total reserves of up to 35 trillion cubic feet. The project is comprised of a gas processing facility with the capacity of 3.5 billion cubic feet per day, a gas pipeline of 1,300km and an LNG production complex of 20 million tonnes per annum with three trains that can transfer approximately 12,500cu.m of LNG per hour, two 240,000cu.m storage tanks and two loading berths to accommodate LNG carriers up to 217,000cu.m (Q-Flex).

The Alaska LNG has projected capital expenditures at about US$43 billion and is expected to come into operation since year 2024.