Development opportunities for gas industry

Source: |

(QNO) - The signing of a project framework heads of agreement and a gas sales heads of agreement for the Ca Voi Xanh (Blue Whale) between PetroVietnam Exploration Production Corporation (PVEP) under PetroVietnam (PVN) and ExxonMobil Vietnam creates development opportunities for Quang Nam province’s gas industry.

Tam Quang beach (Nui Thanh district, Quang Nam province) where a landing station of Ca Voi Xanh gas field is expectedly installed
Tam Quang beach (Nui Thanh district, Quang Nam province) where a landing station of Ca Voi Xanh gas field is expectedly installed

In 2009, a contract of gas product for blocks 117, 118 and 119 offshore Vietnam was signed. In March 2016, an agreement on comprehensive co-operation in exploitation and sale of gas and petrochemical products between Quang Nam province and PVN was done. According to Head of Chu Lai Open Economic Zone Management Board Do Xuan Dien, the province is ready for the implement of the Ca Voi Xanh natural gas project and the establishment of gas and power center in central Vietnam with a total area of 3,400ha. Besides, a hydrometeorology station is installed; infrastructure investment linking industrial zones, gas and power plants and investors who use these products for their production is carried out; clear ground for investors is prepared; concentrated industrial zones covering an area of 3,000ha are invested to attract investment projects after gas.

Reported from the investors, activities of gas exploitation and cleaning of Ca Voi Xanh project cost approximately 8 billion USD and four gas power plants with 3,000MW cost about 7-8 billion USD. Prime Minister of Vietnam Nguyen Xuan Phuc said that Ca Voi Xanh project would create development motivity for the key economic zone of central Vietnam; meet the demand of petrochemical industry, electricity; ensure national energy security, local and regional  growth of economy, industry and employment opportunities. Recently, Vietnam’s Deputy Prime Minister Vuong Dinh Hue confirmed the Government and the concerned ministries would direct  Vietnam Electricity (EVN) and PVN to quickly reach a framework agreement on buying and selling electricity in order to ensure comprehensive development of the Blue Whale gas and electricity complex. EVN and PVN have also been tasked to select investors for four power plants that will be fuelled with gas from the Ca Voi Xanh field. To achieve success in the Ca Voi Xanh project, ExxonMobil and PVN need to make every effort to pump the first gas flow by the end of 2023, said by Deputy Prime Minister Hue.