Overseas Private Investment Corporation (OPIC) has extended its support to Virginia-based energy company AES to construct of a liquefied natural gas (LNG) terminal plant and a 2,250 MW combined cycle power plant in Vietnam.
The power plant project is expected to provide approximately 5% of the country’s power generation capacity and support its continued economic development.
OPIC president and CEO Ray Washburne said: “This project is in line with OPIC's initiative to promote the expansion of LNG markets in the Indo-Pacific region.
“We are excited about the opportunity to support AES and look forward to facilitating critical investment into Vietnam's energy infrastructure and supply.”
AES Eurasia strategic business unit president Mark Green said: “With this project, AES plans to leverage from our experience and replicate the success of our LNG businesses in Central America and the Caribbean.
“AES has been partnering with OPIC on various state-of-the-art power generation projects around the world and is grateful for the agency’s expertise and support with this new project in Vietnam.”
Once complete, the project is expected to bring sustainable and cost-effective energy to Vietnam, while at the same time satisfying a growing demand for electricity and need for natural gas in Asia.
The development follows the signing of a memorandum of understanding (MoU) by the PetroVietnam Gas (PV Gas) with the AES Group and Alaska Gasline Development.
Under the agreement, AES will work on Son My liquefied natural gas terminal project in Binh Thuan Province, in southern Vietnam.
Alaska Gasline and PV Gas will cooperate in LNG supply and upstream investment, allowing the US firm to sell LNG to Vietnam.