The government of Vietnam has granted approval to US-based power generator and distributor AES Corporation for the development of a new 2.2GW combined cycle gas turbine power plant named Son My 2.
The project, which is implemented in the Build - Operate - Transfer (BOT) contract, will be located in the south-central province of Binh Thuan and will have a 20-year contract with the government once operational.
It is expected to achieve financial close in 2021 and begin commercial operations in 2024.
The approval is given at the signing ceremony between the Ministry of Industry and Trade of Vietnam and the US Department of State for comprehensive energy cooperation at the headquarters of the latter.
The contract for construction of Son My 2 plant is worth more than $5 billion. When officially put into operation, it will create a demand for importing LNG from US up to nearly $2 billion per year.
AES and South Korea's Posco Energy and China Investment Corporation jointly developed Mong Duong 2 thermal power project with a capacity of 1,200MW. The project was completed and has been put into commercial operation since April 2015.
AES currently showed its interested in the Son My gas project chain of which Petro Vietnam Gas JSC now is the investor. In November 2017, the two sides signed a memorandum of cooperation on the Son My LNG terminal.
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.
“AES is committed to the country’s economic growth and energy transition through the development of gas and renewable infrastructure,” said Andrés Gluski, AES president and chief executive officer.
“We appreciate that the Government of Vietnam has selected us to advance this critical project for the country,” he added.