US Firm Gets Nod for $5 Bln Power Plant in Vietnam
Vietnam has given U.S. firm AES the go ahead to build a $5 billion liquefied natural gas power plant in central Binh Thuan Province.
Gas tanks at a gas processing plant in Vietnam. Photo courtesy of PV Gas.
American power distributor AES Corporation will build the 2.2 GW combined cycle gas turbine Son My 2 plant under a 20-year build-operate-transfer (BOT) contract with the government. The plant is expected to begin commercial operations in 2024.
According to the Ministry of Industry and Trade (MoIT), the plant will use $2 billion worth of liquefied natural gas (LNG) per year when it comes into operation, helping balance Vietnam’s trade surplus with the U.S.
The Son My 2 plant, along with Son My 1 and Son My 3 power plants, are part of a 4,000MW power complex planned in the central province. Son My 2 is expected to consume 0.6 million tons of LNG annually.
In Vietnam, AES has invested in developing the 1,240 MW Mong Duong 2 Thermal Power Plant in the northern province of Quang Ninh, which began operations in April 2015.
Last month, Binh Thuan had approved an investment by Vietnam-focused development and asset management company Energy Capital Vietnam into another LNG power project worth over $5 billion. The 3,200 MW project, which will also use LNG from the U.S., is expected to be completed in 2025.