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AES agrees to sell Mong Duong 2 Coal-Fired Plant in Vietnam

Xuan Thinh Wednesday | 01/06/2021 13:44

Photo: Quang Ninh News

The AES Corporation signed an agreement to sell its entire equity interest in the 1,242 MW Mong Duong 2 coal-fired power plant in Vietnam to a consortium led by a US-based investor.

The deal value and buyers have not been disclosed. The 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, according to a statement posted on the AES Corporation’s website.

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

The construction of Mong Duong 2 was completed in 2015 under a Build-Own-Transfer contract, with a 25-year Power Purchase Agreement with Vietnam Electricity, a State-owned utility.

"We have had a very positive experience in developing, building and owning Mong Duong 2 and Vietnam remains an important growth market for AES, where we look forward to contributing to the country's transition to a more sustainable energy future," said Andrés Gluski, AES President and Chief Executive Officer. 

In line with its global strategy to invest in renewables and LNG infrastructure, in Vietnam AES Corporation continues to make good progress on the development of the 450 TBTU Son My LNG terminal with PetroVietnam and the 2,250 MW Son My 2 combined cycle gas power plant, statement said.

The AES Corporation is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, it is improving lives by delivering the greener, smarter energy solutions the world needs. 

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