PetroVietnam Gas is set to sign a $2.8 billion deal with U.S.-based energy company AES, the U.S. Secretary of State Mike Pompeo said on Wednesday.

The companies are planning the develop an LNG-to-power project, which includes a terminal for liquefied natural gas and a power plant, Kallanish Energy learns.

“Vietnam has given the green light to AES Corp., a company based in Virginia, to go forward with the project,” Pompeo said during a virtual Indo-Pacific Business Forum.  

“American companies adhere to the rule of law and transparency and have very high standards of quality for their products,” said Pompeo, before adding: “I say that because that’s quite a contrast with the Chinese state-backed companies” eyeing Vietnam.

The companies didn’t comment on the announcement.

Also on Wednesday, ExxonMobil and Jera signed a Memorandum of Understanding (MoU) for another LNG-to-power project in Vietnam. Earlier this month, Delta Offshore Energy announced a $4 billion investment in a 3.2-gigawatt (GW) power plant in Bac Lieu Province, Vietnam.

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