Approval granted for $1.3 billion LNG terminal project in central Vietnam

Binh Thuan Province has granted approval to AES, a U.S. energy firm, and Petrovietnam Gas to construct the Son My LNG Terminal, a major facility for managing liquefied natural gas import and export. With a projected completion date in 2027, the terminal will become Vietnam’s largest and will have a capacity of 450 trillion British thermal units. During the initial phase, the terminal will handle 3.6 million tons of LNG annually, which will increase to 6 million tons in the second phase.

Joseph Uddo, President of AES Vietnam, expressed that the Investment Policy Approval for the Son My LNG Terminal is a significant milestone, allowing them to proceed with the development of this crucial infrastructure project. The Son My LNG terminal, along with AES’ 2.2-gigawatt Son My 2 combined cycle gas turbine (CCGT), represents a substantial multibillion-dollar investment. The Son My 2 CCGT, which received investment policy approval earlier this year, will provide safe and reliable energy to support Vietnam’s growth while facilitating the transition to cleaner and greener technologies, according to AES.

Marc E. Knapper, the U.S. Ambassador to Vietnam, highlighted that the Son My project will enhance energy security in Vietnam during the transition to cleaner energy sources. Vietnam’s latest energy development plan aims for LNG to account for 14.9% of the total generation capacity by 2030. The country plans to have 13 LNG facilities with a combined capacity of 22,400 megawatts by that time.