Opportunity for Gas Industry to Take off in Binh Thuan

The gas industry is something new for Binh Thuan province. However, prospects in the industry are very attractive to famous foreign corporations.

 

Dinh Huy Hiep, director of the Department of Industry of Binh Thuan, said that despite unofficial figures on gas reserves in Binh Thuan, there are factors for the province to believe it will be able to develop the gas industry. Firstly, many investors have registered to invest in Binh Thuan. Secondly, the second drill in the field of Su Tu Trang has been completed. The first drill found 56 billion cubic metres of gas. Alongside the third field, it is expected that the province will have between 80 billion and 100 billion cubic metres of gas. Meanwhile, with 40 billion cubic metres of gas, another gas industrial complex should be built at Ham Tan, alongside the Phu My in Ba Ria Vung Tau.

 

The gas industry will create momentum for Binh Thuan’s industrial development, which may result in a restructuring. At present, the processing industry accounts for between 94 and 95 per cent. The remainder belongs to the electric and mining industries. In the coming time, the structure will change with the processing industry increasing its absolute value and reducing its proportion to between 55 and 60 per cent. Production and electricity and water supply industries will increase their proportion.

 

So far, the Sumitomo Group of Japan has registered to develop infrastructure facilities of industrial parks and set up a joint venture with Belgas to develop a gas-run electric power plant with a capacity of between 600 and 700 megawatts, which is capitalised at between US$650 million and 700 million. Petronas of Malaysia has registered to build a US$690 million electric power plant with a capacity of 650 megawatts, and a system of gas pipelines. Let alone other investors from Russia, the Czech Republic and Vietnam. The Department of Energy, the Ministry of Industry, has introduced two investors to develop petrochemical projects with a capacity of between five and six million tonnes per year.

 

With such great potential, the Prime Minister has approved the development of the Son My industrial and service complex, 90 kilometres from Phan Thiet city and between 70 and 90 kilometres from these oil and gas fields. Giang Cong Tuyen, deputy director of the Binh Thuan Industrial Park (IP) Administration, said that the complex had an area of 4,100 hectares, including the Son My 1 IP with 1,500 hectares, developed by the Urban and Industrial Zone Development Investment Corporation (IDICO) and Son My 2 with 1,300 hectares developed by the Sumitomo Group and Belgas of Vietnam, a golf course and service areas of 180 hectares, an urban area of 925 hectares and a green zone of 195 hectares.

The Son My industrial and service complex will attract around 150 projects with a total investment capital of between US$2 billion and 2.5 billion. It will be a major gas-electricity centre in Vietnam, acting as a driving force for the development of Binh Thuan after 2010. Procedures for the projects are expected to be completed in 2006 and in early 2007 the construction of the complex will start.