US energy firm AES has signed an agreement with the Vietnamese government to build the $1.7 billion Son My 2 gas-fired power plant.
The US Embassy in Hanoi said that the memorandum of understanding (MOU) between AES and the Ministry of Industry and Trade in Vietnam would “solidify” the planned cooperation to develop the 2.2 GW combined cycle (CCGT) power plant in the south-central province of Binh Thuan.
AES was given the green light to develop the power plant in September 2019 and says that it expects to achieve financial close in 2021 and begin commercial operations in 2024.
AES will have a 20-year contract with the Vietnamese government to operate Son My 2. It said that the investment will complement its other plans to invest in gas infrastructure in Vietnam, including the $1.4 billion Son My LNG import terminal.