Pompeo says AES of US, PetroVietnam to sign $2.8B LNG deal

Business News
Mike Pompeo

U.S. Secretary of State Mike Pompeo speaks during a joint press briefing with Sri Lankan Foreign Minister Dinesh Gunawardena in Colombo, Sri Lanka, Wednesday, Oct. 28, 2020. In pre-recorded remarks Wednesday to a business conference taking place in Vietnam, Pompeo says the U.S. energy firm AES and PetroVietnam plan to soon sign an agreement on a $2.8 billion liquefied natural gas project. (AP Photo/Eranga Jayawardena)

HANOI (AP) — The U.S. energy firm AES and PetroVietnam plan to soon sign an agreement on a $2.8 billion liquefied natural gas project, U.S. Secretary of State Mike Pompeo said Wednesday.

Pompeo made the comments in pre-recorded remarks to a business conference hosted both online and in person in Hanoi, the Vietnamese capital.

Arlington, Virginia-based AES Corp. and its Vietnamese partners have been gradually ramping up efforts to develop a hub for importing LNG from the U.S. over the past several years.

Pompeo said Vietnam has approved the project, and that it would “open the door to billions of dollars per year in U.S. LNG exports to Vietnam. That’s a real win-win situation.“

Last year, President Donald Trump and his Vietnamese counterpart, Tran Dai Quang, signed a memorandum of understanding on AES working with PetroVietnam Gas JSC to develop the LNG terminal and 2,250 megawatt power plant at Son My, in the south-central province of Binh Thuan.

Vietnam’s demand for energy is soaring as its economy rapidly industrializes. The U.S., its biggest trading partner, is keen to increase exports to the country to help rebalance its trade deficit, which was nearly $55 billion in 2019.

The U.S. has been seeking to increase American investments in Asian energy, infrastructure and telecoms and has nearly 60 potential projects worth $185 billion, Pompeo said without giving details.

Delta Offshore Energy and a consortium that includes Bechtel Infrastructure, GE Power and other companies also recently announced plans for a $4 billion LNG to power project in southern Vietnam’s Bac Lieu province.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

The Markets

More The Markets

Associated Bank Market Outlooks and Thought Leaders

More The Opening Bell