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AES, PetroVietnam Gas to Sign $2.8 Billion LNG Deal: Pompeo

AES, PetroVietnam Gas to Sign $2.8 Billion LNG Deal: Pompeo

AES Corp. (N:AES) will sign an arrangement with PetroVietnam Gas (HM:GAS) to build up a $2.8 billion liquefied natural gas (LNG) import terminal and a power plant in Vietnam, U.S. Secretary of State Mike Pompeo said on Wednesday. 


AES Corp. (N:AES) will sign an arrangement with PetroVietnam Gas (HM:GAS) to build up a $2.8 billion liquefied natural gas (LNG) import terminal and a power plant in Vietnam, U.S. Secretary of State Mike Pompeo said on Wednesday. 


"Vietnam has given the green light to AES Corp. (N:AES), a company based in Virginia, to go forward with the project," Pompeo said at a virtual Indo-Pacific Business Forum.


The arrangement will open the door for the import of billions of dollars worth of U.S. LNG to Vietnam every year, Pompeo stated, depicting it as a  "real win-win situation".


The forum, also attended by his Vietnamese partner Pham Binh Minh, comes as the United States inclines up its rhetoric against the regional impact of Chinese state firms. 


"American companies adhere to the rule of law and transparency and have very high standards of quality for their products," Pompeo said. "I say that because that's quite a contrast with the Chinese state-backed companies."


Vietnam is building various LNG-to-power plants, with the first to be operational by 2023, an eager move that could see LNG become a major energy source for its fast-growing economy. 


A lot of that will be imported from the United States, which needs to limit its trade deficit with Vietnam, which broadened to $44.3 billion in the initial nine months of this year from $33.96 billion in a similar time of 2019. 


Additionally, at Wednesday's forum, Delta Offshore Energy formalized an earlier announced plan for a $3 billion agreement with Bechtel Corp., General Electric (N:GE), and McDermott for the advancement of a 3.2-gigawatt LNG power plant in Bac Lieu territory, the U.S. Embassy in Hanoi said.



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