ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business

PV Gas signs memorandums with two US energy companies

Deals in Vietnam highlight Donald Trump's bilateral, business first approach

U.S. President Donald Trump, third from left, and his Vietnamese counterpart, Tran Dai Quang, third from right, witness the signing of a memorandum of understanding between PV Gas and Alaska Gasline Development Corp. in Hanoi on Nov. 12.

HO CHI MINH CITY -- Vietnam's PetroVietnam Gas on Sunday signed memorandums of understanding with two U.S. energy companies -- AES Corp. and Alaska Gasline Development Corp., on the sidelines of U.S. President Donald Trump's two-day visit to the country.

Trump was in Vietnam for the Asia Pacific Economic Cooperation meeting in Danang. His next stop is the Philippines, where he is attending a summit of Asian leaders.

Under the agreement signed in Hanoi, AES will work with PV Gas on its Son My liquefied natural gas terminal project in Binh Thuan Province, in southern Vietnam. Mark Green, president of AES' Eurasia unit, said the project will bring sustainable and cost-effective energy to Vietnam and help satisfy growing demand for electricity and natural gas in Asia.

Vietnamese Prime Minister Nguyen Xuan Phuc, center, visits a PV Gas facility in May 2017.

AES, headquartered in Virginia, has power generation and distribution operations in 16 countries. In 2016, it had revenue of $13.6 billion and managed some $36 billion in assets.

AES is already active in Vietnam. It built the Mong Duong 2 coal-fired power plant in the country's northeastern Quang Ninh Province. The 1,240 megawatt plant was financed with a $1.46 billion loan and has been operating commercially since April 2015.

Following the signing ceremony, the Overseas Private Investment Corp. of the US, released a letter of intent supporting the project, which will include an LNG import terminal and a 2,250MW combined-cycle power plant in Vietnam. OPIC said the project will provide around 5% of the country's power generation capacity and support its economic development.

The letter included a statement from OPIC President and CEO Ray W. Washburne expressing hopes for its investment in Vietnam's energy industry. He said the project was in line with OPIC's 

A PV Gas plant in Vietnam

effort to promote the expansion of LNG markets in the Indo-Pacific region.

Let it flow

Alaska Gasline Development and PV Gas, meanwhile, have agreed to cooperate in LNG supply and upstream investment, opening the door for the U.S. company to sell liquefied natural gas to Vietnam. The two sides also plan to look for ways for the Vietnamese state-owned company to invest in Alaskan gas fields.

Alaska Gasline Development is owned by the state of Alaska, financing and developing gas projects. It owns the Alaska LNG Project, which holds an estimated 35 trillion cubic feet of reserves. The $43 billion project is expected to begin exporting LNG by around 2024.

The Vietnamese deals highlight Trump's effort to drum up business in the region for U.S. companies. In a speech to APEC  leaders on Sunday, Trump expressed his preference for stronger bilateral ties to countries in the Asia-Pacific region, rather than the multilateral approach favored by his predecessors.

The LNG import and power projects are important to PetroVietnam and its PV Gas unit, as Vietnam tries to diversify its sources gas supply, while meeting the country's growing demand for energy.

On Nov. 7, Liam Mallon, president of ExxonMobil's development unit, told a business forum on the sidelines of the APEC meeting in Danang that his company is nearing a final agreement with Vietnam on a massive natural gas project in the central part of the country no later than 2019, which will aim to start production in 2023.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media