US-based electric utility AES Corporation has been given approval by the Vietnamese government to develop the Son My 2 power plant, a 2.2GW combined cycle gas turbine (CCGT) facility to be built in Binh Thuan, Vietnam.

Located in the south-central part of Vietnam, the Son My 2 power project will be supported by a 20-year contract with the Vietnam government.

AES expects to reach a financial close on the Vietnamese power plant in 2021 with a target to begin commercial operations in 2024.

The electric utility said that the Son My 2 power plant is in line with its investment plans in gas infrastructure in Vietnam. In August 2019, the company’s 450 TBtu Son My LNG terminal was approved by the Vietnamese government, which along with the gas-fired power plant is expected to play a key role in defining the country’s energy future by diversifying the energy mix with imported LNG.

The Son My 2 power project and the Son My LNG terminal are also expected to address the growing demand for sustainable and affordable electricity in Vietnam.

Commenting on the approval for the Son My 2 power plant, Andrés Gluski – AES President and CEO said: “AES is committed to the country’s economic growth and energy transition through the development of gas and renewable infrastructure.

“We appreciate that the Government of Vietnam has selected us to advance this critical project for the country.”

AES further said that the approval is a major milestone in the development of the Son My 2 power plant and the Son My LNG terminal, which allows the company to pursue the required permitting and related project agreements.

  AES, AES Corporation, Andres Gluski, Binh Thuan, Gas-fired power plant, Son My 2 power project, Son My LNG terminal, Vietnam