On September 30, AES Corporation (AES) was officially granted approval by the Government of Vietnam to develop a 2.2 GW combined cycle gas turbine (CCGT) power plant, which will be located in Binh Thuan province. AES CEO Andrés Gluski received the approval from Vietnam Minister of Industry & Trade Tran Tuan Anh in Washington DC in the presence of U.S. officials.
The Son My 2 plant will have a 20-year contract with the Government of Vietnam and is expected to achieve financial close in 2021 and begin commercial operations in 2024.
“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.”
Photo caption: AES President and Chief Executive Officer Andrés Gluski received the approval from Minister of Industry & Trade Tran Tuan Anh
Son My 2 complements AES’ investment plans in gas infrastructure in the country with its previously announced 450 TBtu Son My LNG terminal, which received approval from the Government of Vietnam in August 2019. 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.
Speaking about the approval, David Stone, CEO of AES Vietnam said, “The Son My 2 CCGT Project and Son My LNG Terminal Project are an excellent example of the continued partnership between the United States and Vietnam. We strongly believe that the implementation of these two projects will substantially contribute to the bilateral trade and investment relationship between the two countries while at the same time creating jobs and supporting Vietnam to move toward a greener energy future”.
This approval represents a significant milestone in the development of the CCGT plant and the LNG terminal, enabling AES to move forward with the necessary permitting and associated project agreements.