Power company AES Corp has agreed to sell its majority interest in the 1242MW Mong Duong 2 coal-fired power plant in Vietnam.

As per the signed agreement, a consortium led by a US-based investor will acquire the stake.

AES owned a 51% equity interest in Mong Duong 2 power plant. Posco Energy Company owns 30%, with the remaining 19% equity interest held by China Investment Corp’s subsidiary Stable Investment.

AES president and CEO Andrés Gluski said: “We have had a very positive experience in developing, building and owning Mong Duong 2 and Vietnam remains an important growth market for AES, where we look forward to contributing to the country’s transition to a more sustainable energy future.

“In line with our global strategy to invest in renewables and LNG infrastructure, in Vietnam we continue to make good progress on the development of the 450 TBTU Son My LNG terminal with PetroVietnam and the 2,250MW Son My 2 combined cycle gas power plant.”

Mong Duong 2 was built in 2015 under a build-own-transfer contract. It has a power purchase agreement in place with the state-owned utility Vietnam Electricity for 25 years.

Completion of the deal is subject to customary approvals from the Government of Vietnam and the minority partners in Mong Duong 2.

The transaction will close late this year or early next year. The company has not disclosed financial details of the deal.

Last year, AES agreed to sell its interest in the 295MW Itabo power plant to conglomerate Grupo Linda for approximately $101m.

The Itabo power plant in San Cristobal uses both a 260MW coal-fired plant and a 35MW gas turbine. AES has owned and operated these for more than two decades.