Over USD5.5 billion to advance Vietnam’s energy and aviation sectors

Friday, 02/06/2017 10:31
(CPV) - As part of the visit to the US, Vietnamese Prime Minister Nguyen Xuan Phuc and US Commerce Secretary Wilbur Ross recognized the signings MoU and JDA agreements with GE to support new gas and wind-power generation projects in Vietnam.

GE announced the signing of agreements valued at more than USD2 billion to support the development of Vietnam’s energy sectors, as well as agreements valued at over USD3.58 billion for new CFM International aircraft engines and maintenance support. This constitutes the largest combined set of transactions for GE in Vietnam in the company’s history.  

Chairman of PetroVietnam's Board of Directors Nguyen Vu Truong Son (left) and GE partner at the signing ceremony
The energy agreements include a Memorandum of Understanding (MoU) to co-develop 1,500 megawatts (MW) new gas power plants and a Joint Development Agreement (JDA) on 800MW Phu Cuong wind farm in Soc Trang province. GE has been active in Vietnam for 24 years and provides more than 30 percent of Vietnam’s installed base power generation. 

CFM International signed two new agreements with VietJet Air, including a maintenance support contract for the airline’s 215 LEAP-1B engines. In addition, the airline expanded its CFM-powered A321 fleet.

The agreements will include financing from GE and draw on technology and parts sourced from across GE’s US manufacturing footprint.

“Through a strong local presence, we have built long term partnerships with our customers in Vietnam to meet the country’s unique needs. Our most recent deals, which will support our US and global manufacturing operations, further reinforce the important economic, trade and investment partnership between Vietnam and the US”, said Wouter Van Wersch, President and CEO of GE ASEAN.

Advanced combined cycle power plants

GE and the Vietnam National Oil and Gas Group (PetroVietnam) will cooperate on the development of two 750MW combined cycle gas turbine power plants - Mien Trung I & II – using the Blue Whale Gas Field which is the biggest gas project in Vietnam up until now, with an estimated 150 billion cubic meters of reserves (equivalent to 5.4 Trillion Cubic Feet (Tcf). The Mien Trung I plant is expected to begin operations in 2023 and Mien Trung II in 2024. GE, with its global power development expertise, shall work with Petrovietnam to identify the latest technology solutions to provide higher efficiency, lower fuel consumption and lower emissions. The MoU once again strengthens GE’s footprint in Vietnam’s energy infrastructure development.

800MW Phu Cuong wind farm in Soc Trang province

GE together with its development partners International Mainstream Renewable Power and Phu Cuong group signed a JDA on developing the 800MW Phu Cuong wind farm in Soc Trang province.

Vietjet Air engine order and services contract

CFM International signed two new agreements with VietJet Air, including a 12-year maintenance support contract for the airline’s 215 LEAP-1B engines ordered in 2016.  Under the terms of the agreement, valued at USD3.0 billion at list price, CFM guarantees maintenance costs for the all VietJet Air’s LEAP-1B engines that will power its fleet of 100 Boeing 737 MAX airplanes on a dollar per engine flight hour basis.

In addition, the airline expanded its CFM-powered A321 fleet with an order for 20 CFM56-5B engines to power 10 new aircraft. This agreement, which also includes a long-term maintenance agreement, is valued at USD580 million at list price./.

CFM International is the world's leading supplier of jet engines for commercial airplanes, and a 50/50 joint company of Safran Aircraft Engines of France and GE of the US.

 

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