PetroVietnam Gas Joint Stock Corporation (PV Gas) and AES Group of the United States signed an agreement on October 28 to mark the start of a joint venture contract regarding the Son My liquefied natural gas (LNG) port warehouse project. 

The signing ceremony is held virtually on October 28. (Photo: BNews)

The signing ceremony was held within the framework of the Indo-Pacific Business Forum in Hanoi with the participation of representatives from both PV Gas and AES Group.

Addressing the event, Duong Manh Son, general director of PV Gas, highlighted the great efforts put in by the respective negotiating teams of PV GAS and AES to speed up the signing of the joint venture contract as soon as possible.

He affirmed that the construction of LNG Son My port warehouse is anticipated to meet the growing gas and electricity demands of the southern key economic region and the country in general, therefore contributing to ensuring national energy security.

The LNG Son My port warehouse project is part of the LNG gas power project chain in Binh Thuan province. It has a designed capacity of 3 million tonnes annually for phase one, with 6 million tonnes per year expected during subsequent phases.

The project ultimately aims to supply LNG to the Son My 1 and Son My 2 power plants from 2024 whilst also meeting the shortage demands for gas in southern Vietnam in the near future.

AES is a global power company that has its headquarters in Virginia, the US. The firm has extensive experience in generating and distributing electricity globally, especially in terms of building infrastructure to be used by the gas industry.

Domestically, AES operates successfully and has been making investments into the Mong Duong 2 coal-fired power plant project that has a capacity of 1150 MW in Quang Ninh since 2010.

At present, AES has been approved by the Vietnamese Government to be the main investor in the Son My 2 power plant project and will contribute capital to Son My LNG port warehouse with PV Gas.