US-based power company AES is reportedly set to sign a deal with PetroVietnam Gas to develop a $2.8bn LNG import terminal and a power plant in Vietnam.
At a virtual Indo-Pacific Business Forum, US Secretary of State Mike Pompeo was quoted by Reuters as saying: “Vietnam has given the green light to AES Corp. AES.N, a company based in Virginia, to go forward with the project.”
Pompeo said that the deal, which could be “real win-win situation”, will allow Vietnam to import US LNG worth billions of dollars annually.
Vietnam is building a number of LNG-to-power plants, with the first project planned to be commissioned by 2023, reported the news agency.
The move is expected to see LNG become the country’s major energy source for its growing economy.
Vietnam intends to import majority of its LNG from the US
Vietnam intends to import a majority of its LNG from the US, which seeks to narrow its trade deficit the Asian country.
In 2018, PetroVietnam Gas commissioned the VND10tn ($439m) Ca Mau Gas Processing Plant in the Khánh An commune in U Minh District in the southernmost province of Ca Mau, Vietnam.
The plant is capable of producing 600 metric tonnes of liquefied petroleum gas (LPG) per day as well as 35 tonnes of condensate a day and other supporting products.
Expected to cover about 10% of Vietnam’s LPG requirements, the Ca Mau Gas Processing Plant is equipped to have a daily capacity of 6.2 million m3 of gas. It also capable of storing 8,000 tonnes of LPG and 3,000m3 of condensate.
