PetroVietnam in Talks with Petronas to Buy 1.6 Bln cu.m of Gas

The state-owned oil monopoly PetroVietnam group is negotiating with Malaysia's Petronas for gaining permission to buy 1.6 billion cubic meters of gas to supply for Ca Mau 1 and 2 thermal power plants.

 

Petronas said it would make a final decision on PetroVietnam's proposal in mid-March.

 

If the negotiation succeeds, Petronas will only receive a minimum gas supply of 1.4 million cubic meters a day as it did last year.

 

As part of efforts to ensure sufficient gas supply for own power plans this year, PetroVietnam also offered Talisman - operator at block PM-3 of the Malaysia-Vietnam Commercial Arrangement Area (PM-3 CAA) - to postpone gas supply to deal with mercury stagnated in the oilrig system between May and June.

 

The manager is considering PetroVietnam's suggestion.

 

Late last year, Talisman must close down some oil wells with high mercury content at PM3-CAA and 46-Cai Nuoc areas, causing the shortfall in gas production.

 

Talisman has targeted to produce 2.22 cubic meters of gas during this year, 480 million cubic meters lower than the annual gas volume written in the contract.

 

Vietnam is forecast to face a power shortage of 1.07 billion kWh this dry season as three PetroVietnam-owned power plants - Ca Mau 1, Ca Mau 2, and Nhon Trach 1 - do not have enough fuel for generation, the state-owned Electricity of Vietnam (EVN) blamed. (The People)