AES receives Investment Policy Decision for 2.2 GW Son My 2 CCGT plant in Vietnam

The conference featured Prime Minister Pham Minh Chinh, and top government officials, including minister of Planning and Investment Nguyen Chi Dung and minister of Industry and Trade Nguyen Hong Dien.

The 2.2GW Son My 2 CCGT power plant will be located in Binh Thuan province. The $1.8 billion plant will have a 20-year contract with the Vietnamese government.

Speaking at the conference, Joseph Uddo, president of AES Vietnam said, “The investment policy for Son My 2 CCGT power plant marks a significant milestone enabling us to move ahead with the project.

“We are honoured to receive the approval in this significant event today on the action plan to implement Resolution No. 26-NQ/TW of the Politburo, recognising the importance of the power plant project in ensuring energy security, promoting international investment and the socioeconomic development of Vietnam.”

Son My 2 complements AES’ investment plans in gas infrastructure in the country and the previously announced $1.4 billion Son My LNG import terminal, a joint venture with PetroVietnam Gas JSC (PV Gas), which acquired its investment registration certificate in May 2022.

AES, through its subsidiary, AES Mong Duong Power Co., Ltd., successfully developed and arranged financing for the Mong Duong 2 Power Project of 1,242MW with a total investment of approximately $2.1 billion.

This was Vietnam’s first build-operate-transfer (BOT) coal-fired power project, representing about 2.3 per cent of the country’s installed capacity.

The CCGT and terminal are expected to play a major role in shaping Vietnam’s energy future.

In November 2017, AES signed an MoU with PV Gas in the presence of US President Donald J. Trump and Vietnamese President Tran Dai Quang to develop the $1.3 billion Son My LNG terminal project.

Then, in November 2019, AES signed another MoU with the Ministry of Industry and Trade to develop a 2.2GW CCGT power plant under BOT format in Binh Thuan province.

In October 2020, AES Vietnam and PV GAS inked a Term Sheet of the JV Agreement for Son My LNG terminal.

The CCGT and terminal are expected to play a major role in shaping Vietnam’s energy future by diversifying the energy mix with imported LNG and meeting the country’s increasing demand for sustainable and affordable electricity.

The joint venture of PV Power, Colavi, Tokyo Gas, and Marubeni is behind schedule for the completion of the $2 billion Quang Ninh liquefied natural gas (LNG) power plant.

Nikkei Asia, a news service in Japan, ran an article on January 6 saying that Vietnam's offshore wind power sparks an influx of foreign investment.

The inauguration of the $2-billion Song Hau 1 thermal power plant in the Mekong Delta province of Hau Giang will contribute to ensuring national energy security.