Linh told assembled reporters that PV Gas would step up the implementation of big-ticket projects this year.

It will carry out phase two of Nam Con Son 2 gas pipeline project at a cost of US$1 billion at the end of the year to put it into operation two years later. Meanwhile, the first phase of this project will connect to Su Tu Trang oil field. 

PV Gas is boosting work on the Ca Mau gas processing plant project with an investment of US$300 million and will test run it at the end of quarter two this year before its full operation by the year-end.

The company is conducting the feasible study for the Ca Rong Do gas pipeline project which costs some US$1 billion. Work on this project will start this year and be complete in 2019.

“We will concentrate on a project to raise the efficiency of liquefied petroleum gas (LPG) collection at Dinh Co gas processing complex with an investment of US$15-20 million,” Linh said.

The firm is also working on a project to produce plastic balls with an annual capacity of 400,000 tons to meet rising demand on the home market.

Apart from those big-ticket projects, the company will implement small projects in 2017, Linh added. 

PV Gas is building a number of facilities in the central province of Binh Thuan and the southwestern and northern parts of the nation to store imported gas. The firm said domestic gas consumption in the next 10-15 years would be mostly met by overseas suppliers. 

Linh said if the Government allows PV Gas to sell the State stake, the company would select strategic partners to help it fund big-ticket projects in the long run.  

This year, the firm looks to carry 9.3 billion cubic meters of gas ashore, down from 10 billion cubic meters in 2016.  PV Gas explained low oil prices would prompt oil producers to slash output, thus affecting gas output.

The average oil price stood at US$43-45 a barrel in 2016, much lower than in previous years and representing 85% of the 2015 average. PV Gas said it adopted a number of measures so as to attain revenue of roughly VND60 trillion and after-tax profit of VND7.19 trillion last year.

At present, PV Gas supplies gas for the thermal power plants that are responsible for 30% of Vietnam’s electricity output, and the fertilizer facilities that meet 70% of total urea fertilizer needs. It also holds 70% LPG market share.

Source:  thesaigontimes.vn