PetroVietnam Gas is joining forces with US energy firm AES to build the Son My LNG import terminal in Vietnam.
The two firms signed a joint venture agreement on Wednesday in New York for the development of the Son My LNG terminal, according to a statement by state-owned PetroVietnam Gas, a unit of PetroVietnam.
PetroVietnam Gas said the Son My LNG terminal is a part of a $1.3 billion LNG-to-power complex in the country’s province of Binh Thuan.
The first phase of the LNG import facility would have a capacity of about 3.6 million tonnes per year of LNG and would supply two power plants starting in 2025.
In addition, PetroVietnam Gas said the partners could expand the import terminal to have a capacity of 9 million tonnes per year as part of the next phase.
This is not the first move towards the development of this facility as the two firms have been in talks regarding the LNG terminal for a while now. They have last year signed a term sheet for the joint venture in Vietnam.
AES is joining several players, including Delta Offshore, that are planning to build LNG-to-power projects in Vietnam in order to meet the country’s growing power demand.
Russia’s Novatek also recently said it had established an office in Hanoi as it looks to supply LNG to Vietnam.