Co-operative inks gas pipeline deal

A business co-operation contract on a gas pipeline project for Block B – O Mon was signed yesterday, March 11, in Ha Noi by the PetroVietnam Gas Corporation (PVGas), Chevron, MOECO (Japan) and PTTEP (Thailand).

The pipeline is an important project invested in by the PetroVietnam Group, with a total investment capital of US$1 billion. PVGas contributed 51 per cent of the capital, while the remainder came from foreign partners.

The 398km pipeline, which has 246km underwater and 152km on land, runs through Can Tho City and Hau Giang, Kien Giang, Bac Lieu and Ca Mau provinces. The gas transporting capacity is 18.3 million cubic metres per day and night (6.4 billion cubic metres per year). This is the biggest gas pipeline project in Viet Nam.

It is a key project for the Viet Nam’s oil and gas industry. The project’s objective is to transport natural gas from Block B&48/95 and Block 52/97 in the southwest seas of Viet Nam to supply gas for electricity plants at the O Mon Electricity Centre, in Tra Noc of Can Tho (with a total capacity of 3,000MW), partly for the Gas-Electricity-Fertiliser Industrial Park in Ca Mau and for other consumer households in the southwestern region.

In addition, the pipeline is connected with the system for Southeast Asia, and the system for the southeastern region, in order to balance the gas demands of Viet Nam in the future.

Speaking at the signing ceremony, Chevron Vietnam general director Hank Tomlinson said that the signing ceremony marked the start of long-term co-operation to build the gas pipeline. He said he hoped that Chevron would closely work with foreign contractors to develop gas pipeline projects in Viet Nam in 2010 and in the following years.

VietNamNet/Viet Nam News

Tags: Vietnam gas, Vietnam gas pipeline project, Vietnam oil, Vietnam oil and gas