Vietnam Govt Should Delay Gas Price Hike for Power Industry to 2011

The state-owned Electricity of Vietnam Group (EVN) is proposing the government of Vietnam not to raise gas prices for the power industry this year to reduce operational costs of the industry.

EVN said the higher gas prices will drive up its production costs by VND1.283 trillion (US$67.172 million) this year and further increase power prices as gas accounts for 43% of material input of the national power generation.

The group has raised power prices by 6.8% since March, without considering the possibility of gas price hike for the electricity sector and it may has no chance to further raise the power prices this year.

Recently, the Ministry of Industry and Trade said PetroVietnam is seeking a permission from the prime minister to hike prices of gas sourced from the Nam Con Son and Cuu Long basins for the electricity sector from April 1.

Last June, PetroVietnam raised prices of gas sourced from Cuu Long basin for power plants in southeastern region to US$2.98 per million British Thermal Unit (BTU) from US$2 per million BTU.

Gas sourced from the Cuu Long basin is currently priced at US$2.98 per million BTU, from the Nam Con Son basin at US$3.48 per million BTU, and from PM3-CAA field at US$3.96 per million BTU. (Youth)

Tags: Vietnam gas, Vietnam Gas prices

Posted by VBN on Mar 20 2011. Filed under Oil-Gas & Petroleum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry