Son My LNG Terminal

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Son My LNG Terminal is a liquefied natural gas (LNG) import terminal proposed in Binh Thuan Province, Vietnam.

Location

The terminal is proposed to be located in Hàm Tân district, Bình Thuận province.

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Project details

Phase 1

• Owner: PetroVietnam Gas, AES Corporation
• Parent company: PetroVietnam, AES Corporation
• Location: Sơn Mỹ commune, Hàm Tân district, Bình Thuận province, Vietnam
• Coordinates: 10.65008, 107.68464 (approximate)
• Type: Import
• Capacity: 3.6 mtpa, 0.52 bcfd
• Financing: Potential loan of US$3.2 billion from Export-Import Bank of the United States and the U.S. Development Finance Corporation for Son My LNG Terminal and Son My 2 gas power plant (total terminal project)
• Status: Proposed
• Cost: US$1.4 billion (total terminal project)
• Start Year: 2027
  • Formerly 2026-2027

Phase 2

• Owner: PetroVietnam Gas, AES Corporation
• Parent company: PetroVietnam, AES Corporation

• Location: Sơn Mỹ commune, Hàm Tân district, Bình Thuận province, Vietnam
• Coordinates: 10.65008, 107.68464 (approximate)
• Type: Import
• Capacity: 2.4 mtpa (full capacity will be 6 mtpa)
• Financing: Potential loan of US$3.2 billion from Export-Import Bank of the United States and the U.S. Development Finance Corporation for Son My LNG Terminal and Son My 2 gas power plant (total terminal project)
• Status: Proposed
• Cost: US$1.4 billion (total terminal project)
• Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

In 2011, PetroVietnam announced a 3 million mtpa LNG terminal at Son My in southern Vietnam. The proposed terminal will be used to fuel the Son My I power station and the Son My II power station.

In 2015, PetroVietnam Gas submitted a feasibility study for the Son My terminal in Binh Thuan central province. The US$1.3 billion project was expected to have a capacity of 3.6 million tons per year by 2020, which would be raised to 6 million tons per year by 2025 and 10 million tons per year after 2025.

In March of 2018 the Vietnamese government announced that EDF Energy would lead an international consortium in charge of the project. EDF will hold a 37.5 per cent stake in the project and is the leader of the consortium, which comprises Vietnam's Pacific Corp. (25 per cent) and Japanese partners Sojitz (18.75 per cent) and Kyushu (18.75 per cent). As of March 2018, Vietnam is targeting to build the Son My terminal, with a capacity of 1 million-3 million mt/year, between 2023 and 2025, as part of the government's 2035 gas market development master plan. The 2,000-MW Son My 1 project in the Binh Thuan coastal province is expected to be commissioned by 2023-2024. In October 2019 AES Corporation received approval from the government to build the terminal, with construction expected to start in 2021.

In September 2020, it was announced that the expected start-up year had been pushed back to 2026 or 2027.

In September 2021, AES Corporation and PetroVietnam Gas JSC (PV Gas) signed a joint agreement for the terminal, representing a total investment of about US$1.4 billion. The companies expect to reach financing of the project by 2022 and commercial operations by 2026.

In July 2023, the project sponsors received an investment policy approval from Vietnam's Binh Thuan People’s Committee.

Financing

In October 2020, the Export-Import Bank of the United States and the U.S. Development Finance Corporation presented the project sponsors with a Letter of Interest for a loan of US$3.2 billion to cover the construction costs of both the Son My LNG Terminal and the Son My II power station. Financial close for the project was foreseen for 2021, but in May 2022 it was reported that the project promoters were targeting financial close in 2023.

The project was granted Investment Approval by the Binh Thuan People’s Committee on July 11, 2023.