An expectation of a USD 60-billion project in Quang Nam

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(QNO) - A complex of gas, power and nitrogenous fertilizers under the Blue Whale project has been approved by the Government of Vietnam. It will be built in an area of 1,000ha in Tam Quang commune, Nui Thanh district, under the Chu Lai Open Economic Zone (OEZ) with a total investment capital of USD 4.6 billion.

At the meeting with Quang Nam province and the survey of the location of the gas station for the Blue Whale gas power project in Tam Quang commune in mid-2017, Deputy Prime Minister Trinh Dinh Dung affirmed the large scale of this project and its potential for the country's development in the coming years.

Motive project

The Blue Whale gas power project (located 88km East of the coast of Quang Nam) was explored by Exxon Mobil Corporation (US). The reserve of this gas field is about 150 billion cubic meters, tripling that of Lan Tay and Lan Do fields under the Nam Con Son gas project, the largest gas field in Vietnam at this time.

The signing ceremony of a cooperation agreement to invest in the Blue Whale project between PVN, Exxon Mobil and Quang Nam province. Photo: PVN
The signing ceremony of a cooperation agreement to invest in the Blue Whale project between PVN, Exxon Mobil and Quang Nam province. Photo: PVN

As planned, Exxon Mobil will build an offshore central platform to remove gas from water, two submarine clusters of exploitation with 8 wells and two 88-km pipelines linking to Chu Lai coast. The gas terminal is located in an area of 1,000ha in Tam Quang commune, Nui Thanh district, in the area of Chu Lai OEZ.

PetroVietnam (PVN) will invest USD 1.4 billion in building a gas processing plant and a two-unit power plant with a capacity of 600MW- 700MW per unit that will come into operation in 2023. Both of them will be built in Nui Thanh district. Tam Quang commune was chosen as the place of these plants in order to minimize the disturbance and the impacts on people's lives in the area.

It is expected that the first products of this project will be used in 2020.

Great expectations

ExxonMobil has invested USD 600 million in the project. Every work is being sped up with a hope of the first flow of gas ashore by 2023. Quang Nam has prepared necessary facilities and a clean ground space of about 1,000 ha for the project.

Mr. Do Xuan Dien, Head of Management Board of Chu Lai OEZ.
Mr. Do Xuan Dien, Head of Management Board of Chu Lai OEZ.

According to Head of the Chu Lai OEZ Management Board Do Xuan Dien, Quang Nam province was assigned to prepare the infrastructure for the project logistic services. The problem of livelihood in the area of the project has also been carefully paid attention and resolved.

Along with the ground preparation for the Blue Whale gas project, the promotion of using gas from this project with comparative price has also been carried out. Specifically, the gas piping systems to the industrial parks and clusters in Quang Nam will be built to encourage businesses to use gas from Blue Whale project.

Chairman of the Quang Nam People's Committee Dinh Van Thu believed in the lever role of this project for the industrial development in Quang Nam and Central Vietnam. Hopefully, Quang Nam becomes an industrial province in the near future.