AES agrees to sell Vietnamese coal-fired power plant

Power company AES Corporation recently signed an agreement to sell its entire equity interest in the 1,242 megawatt Mong Duong 2 coal-fired power plant in Vietnam.

A consortium led by a US-based investor will be acquiring the stakes.

AES owns a 51 per cent equity interest in Mong Duong 2. Posco Energy Company Limited owns 30 per cent, while Stable Investment Corporation, a subsidiary of China Investment Corporation, owns the remaining 19 per cent.

Mong Duong 2 was constructed in 2015 under a build-own-transfer contract, with a 25-year power purchase agreement with a state-owned utility Vietnam Electricity.

Andrés Gluski, AES president and chief executive officer stated: “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 450 TBTU Son My LNG terminal with PetroVietnam (PVN) and the 2,250 MW Son My 2 combined cycle gas power plant.”

The Son My 2 plant has a power purchase contract with the Government of Vietnam. AES expects it to achieve financial close in 2021 and begin commercial operations in 2024.

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 financial details of the deal have not been disclosed by the company.