PV Gas, Chevron, MOECO, PTTEP Sign Deal for Block B-O Mon Gas Pipeline

The state-owned Vietnam Oil and Gas Group (PetroVietnam), PetroVietnam Gas Corp. (PV Gas), U.S. Chevron, Japanese MOECO and Thai PTTEP signed a business cooperation contract (BCC) on Mar. 11 for the $1-billion Block B-O Mon gas pipeline project in southern Vietnam.

 

PV Gas owns a 51% stake in the project and foreign partner have the rest, the government of Vietnam said.

 

The signing event has proven tight cooperation among partners and PV Gas’ leading position in Vietnam’s gas industry, said Do Khang Ninh, PV Gas general director.

 

Chevron hoped to cooperate with foreign partners to kick-start the project in 2010, said Hank Tomlinson, general director of Chevron Vietnam.

 

The 398-kilometer gas pipeline comprises a 246-kilometer section offshore and the remaining 152-kilometer part stretching over Can Tho City and the Mekong Delta provinces of Hau Giang, Kien Giang, Bac Lieu and Ca Mau.

 

Once fully operational in July 2011, the pipeline will transport 18.3 million cubic meters of gas per day to from Block B, offshore southwestern Vietnam to feed 2,640 MW O Mon power center in Can Tho City and a 750-MW Ca Mau power plant in the southern province of Ca Mau.

 

When operational, this will be the fourth gas pipeline in Vietnam after the 107-km Bach Ho, the 370-km Nam Con Son, and the 325-km PM3-Ca Mau gas pipelines.

 

Vietnam’s gas production is expected to rise between 30% and 40% to between 10 billion and 11 billion cubic meters per year upon the operation of the Block B-O Mon pipeline in 2011. (chinhphu.vn)