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AES to launch LNG hub project in Vietnam

Released at: 13:40, 22/10/2019

AES to launch LNG hub project in Vietnam

Photo: a delegation from PVGAS of Vietnam visited the Colon Facility during inauguration event

New LNG hub to provide new market for US LNG exports and a more cost-effective and sustainable alternative to oil for the region.

by Minh Do

The AES Corporation announced on October 18 the start of operations of the first liquefied natural gas (LNG) hub in Panama and Central America, located at the AES Colón plant. AES plans to also build a similar project in Vietnam in the coming years, which will bring many of these same benefits to Southeast Asia.

The LNG hub at AES Colón was completed in a record 39 months and has employed more than 2,000 Panamanians since the start of the project. It consists of a 180,000 cu m LNG tank and a 381MW combined cycle power plant, which reached commercial operations in 2018 and had been previously operating with gas from temporary sources.

“I would like to congratulate AES Panama on this great achievement of inaugurating the first LNG hub in Central America,” said Mr. David Stone, CEO and Managing Director of AES Vietnam. “LNG has the potential to be a transformative energy technology by providing both economic and environmental benefits. It’s also AES’s major focus in Vietnam as it fits the new strategy of the Vietnamese Government in the power sector.”

“Recently, we were officially granted approval by the government to develop Son My 2, a 2.25GW combined cycle gas turbine power plant, and the 450 TBtu Son My LNG terminal in south-central Binh Thuan province. With these two projects, AES is fully committed to the country’s growth in cleaner energy sources and offering the most reliable and affordable electricity to support Vietnam’s continued economic growth.”

The commercial operation of the LNG storage facility in Panama will allow for the use of LNG throughout the region and establish the country as a natural gas hub in Central America. The use of LNG helps both reduce CO2 emissions and increase renewable energy penetration. Furthermore, LNG conversion lowers electricity costs and provides greater price stability to support economic growth.

“The inauguration of the AES Colón storage facility is a significant milestone towards transforming the Central American energy sector and enabling a safer and more sustainable energy future,” said Mr. Andrés Gluski, AES President and CEO. “Since AES introduced natural gas in the Dominican Republic 19 years ago, it has saved consumers more than half a billion dollars a year and avoided approximately 4 million tons of CO2 emissions annually.”

AES has reserved 80 per cent of AES Colón’s terminal capacity for use by industrial and commercial companies in Panama and Central America. The additional contracting potential is expected to serve as a further source of growth for the company.

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