Vietnam Oil and Gas Group (Petrovietnam or PVN) has entered into multiple agreements with its partners to advance an integrated development project, which includes a gas field off Vietnam’s coast and a pipeline linking it to a nearby power plant.
The partners signed commercial agreements for the Block “B–O Mon” gas-to-power project chain at a ceremony in late March 2024. Prior to this, they had signed framework agreements and a memorandum of understanding (MOU), finalized the engineering, procurement, and construction (EPC) package No. 1, and completed negotiations.
Involved in the project are Vietnam’s national oil and gas company PVN, slated to operate both the field and midstream operations, along with Mitsui Oil Exploration (MOECO), PetroVietnam Exploration Production Corporation (PVEP), PetroVietnam Gas (PV Gas), and Thailand’s PTT Exploration and Production Public Company (PTTEP).
The Block B project features an offshore gas field southwest of Vietnam and a pipeline connecting it to the O Mon gas-fired thermal power plant complex, located 400 kilometers away. The field operates at an average water depth of 77 meters.
Production at the field is scheduled to commence by the end of 2026, targeting a capacity of 490 million cubic feet per day. The total investment for the entire project is estimated at nearly USD 12 billion, positioning it as a core business venture for MOECO.
Upon achieving stable operation, Block B is projected to produce about 5.06 billion cubic meters of gas annually for power generation, equivalent to nearly 22 billion kWh of electricity.
MOECO also plans to invest approximately USD 560 million in the upstream sector through joint investment ventures with JOGMEC, and about USD 180 million in the midstream sector via its wholly-owned subsidiary.
(Source: Offshore Energy)
