AES Sells Stake in Vietnam Coal-Fired Plant
As part of its plan to focus on renewables and LNG infrastructure, New York-listed AES Corporation has divested its entire equity interest in the 1.24-GW Mong Duong 2 coal-fired power plant in Vietnam to a consortium led by a US-based investor.
This transaction is expected to close in late 2021 or early 2022, subject to customary approvals, including from the government of Vietnam and the minority partners in Mong Duong 2, the company said on January 4 in a statement. AES owns a 51% equity interest in Mong Duong 2, Posco Energy Company owns 30% and Stable Investment Corporation, a subsidiary of China Investment Corporation, owns the remaining 19%.
"We have had a very positive experience in developing, building and owning Mong Duong 2 and Vietnam remains an important growth market for AES, where we look forward to contributing to the country's transition to a more sustainable energy future," said AES CEO Andres Gluski. "In line with our global strategy to invest in renewables and LNG infrastructure, in Vietnam we continue to make good progress on the development of the Son My LNG terminal with PetroVietnam and the 2.2-GW Son My 2 combined-cycle gas power plant."
AES and Petrovietnam Gas, a unit of state-run PetroVietnam, signed an agreement to develop the Son My LNG terminal in October last year. AES was also granted approval by Vietnam’s government last year to develop a 2.2-GW power plant in the south-central Binh Thuan province. The Son My 2 plant will have a 20-year power purchase contract with the government and is expected to achieve financial close in 2021 and begin commercial operations in 2024.
Demand for LNG in Vietnam’s power sector is expected to reach 8.5mn metric tons/year by 2030, the country's industry and trade ministry said on September 28. The ministry expects demand for LNG in the power generation sector to reach 1.2mn mt/yr by 2025. At present, Vietnam does not import any LNG.