PV GAS and AES Group sign “Agreement on key terms of Joint Venture Contract for Son My LNG Port Warehouse Project”
On 28th October 2020, within the framework of the Indo-Pacific Business Forum in Hanoi, the signing ceremony of “Agreement on key terms of the joint venture contract for Son My LNG port warehouse project” was held between PV GAS and AES Group (USA).

Attending and witnessing the Online Signing Ceremony on behalf of Vietnam were Mr. Pham Binh Minh - Deputy Prime Minister, Minister of Foreign Affairs, Mr. Do Thang Hai - Deputy Minister of Industry and Trade, Mr. Vu Tien Loc - Chairman of Vietnam Chamber of Commerce and Industry; Mr. Le Manh Hung – President and CEO of Vietnam National Oil and Gas Group (Petrovietnam), Mr. Le Xuan Huyen – Vice President of Petrovietnam. The US side was represented by Mr. Mike Pompeo – Secretary of State, Mr. Daniel J. Kritenbrink - Ambassador of the United States to Vietnam.

 

Mr. Duong Manh Son - General Director of PV GAS signed the Agreement

Mr. Duong Manh Son - General Director of PV GAS and Mr. Bernerd Da Santos - Standing Vice Chairman cum CEO of AES Group represented the two sides to sign the agreement.

On the basis of the Memorandum of Understanding (MOU) signed on 12th November  2017, with the approval and close direction of the Government, the Committee for State Capital Management at Enterprises, relevant ministries and branches and Vietnam National Oil and Gas Group, PV GAS and AES held a negotiation on the key terms of the Joint Venture Agreement to establish Son My LNG Port Warehouse Company. Through active negotiation between the two sides, so far the key terms have been completed, as a premise to deploy and put the project into operation from 2024, synchronous with Son My II power plant project.

 

 Online signing ceremony between PV GAS and AES Group

Speaking at the signing ceremony, Mr. Duong Manh Son thanked for the guidance and support of the Government, relevant ministries and branches, Vietnam National Oil and Gas Group, and highly appreciated the efforts of the Negotiation Team and believed the Joint Venture Agreement would be signed soon. He also affirmed the establishment of Son My LNG Port Warehouse Company would contribute to ensuring the demand for gas as well as electricity for the key economic region in the South particularly and the country generally, and contribute to ensuring national energy security.

 

 Leaders of the Government, US Department of State, Ministry of Industry and Trade, Petrovietnam, and PV GAS take souvenir photos at the signing ceremony.

Son My LNG import port warehouse project is in the LNG gas power project chain in Binh Thuan province, with a port storage capacity of 3 million tons/ year (for phase 1 and up to 6 million tons in the next phase) to receive, process and supply recycled LNG gas as fuel for 2 power plants, i.e. Son My 1 and Son My 2 from 2024, supplement the gas shortage in the South of Vietnam, especially after 2023, when domestic gas sources began to decline. Along with Thi Vai LNG port warehouse project being under construction, Son My LNG import port warehouse project creates a strong breakthrough of Vietnam National Oil and Gas Group in the LNG business, contributes to ensuring the energy supply for national development.

AES is an energy group based in Virginia, USA, named in the list of 500 largest companies in the United States voted by Fortune magazine and one of the leading companies in the world in the energy field. AES has extensive experience in manufacturing and distributing electricity around the world and building infrastructure in the gas industry. In Vietnam, AES has invested in Mong Duong 2 coal power plant project with a capacity of 1150 MW in Quang Ninh. So far, AES has also been approved by the Government to be the investor of Son My 2 Power Plant project using LNG and join PV GAS to contribute capital to Son My LNG Port Warehouse Company.