PV Gas licensed to build US$1.27-billion gas pipeline
AsemconnectVietnam - The Ministry of Planning and Investment has awarded a license to PetroVietnam Gas Joint Stock Corporation (PV Gas) and its foreign partners to build a natural gas pipeline worth US$1.27 billion.
PV Gas and its two foreign partners, Japan’s Mitsui Oil Exploration Co Ltd and Thailand’s PTT Exploration and Production Public Co Ltd, will develop the project.
When in place, the pipeline would deliver around 20.3 million cubic meters of natural gas a day to fuel two power plants with a combined capacity of 3,660 MW.
In addition to supplying gas for the power plants, the pipeline will be used to transport surplus gas to the Gas-Electricity-Fertilizer Industrial Park in the southernmost province of Ca Mau, and household users in the Mekong Delta.
PV Gas said this is one of the largest gas pipelines in the country with a total length of 400 kilometers, with around 246 kilometers of it to be built offshore and the remainder to pass through Can Tho, Hau Giang, Kien Giang, Bac Lieu, and Ca Mau provinces.
The project will save a large sum of foreign currency for importing fuel and leave a positive impact on the environment as gas is a clean source of energy.
PV Gas has unveiled its 2017 business plan in which it will invest over US$2 billion in major projects.
PV Gas supplies gas for thermal power plants which are responsible for 30% of the nation’s electricity output, and for fertilizer facilities that meet 70% of total urea fertilizer demand in the country.
This year the firm looks to carry around 9.6 billion cubic meters of gas ashore, down from 10 billion cubic meters against 2016. The low oil price has led oil firms to slash pumping, resulting in a decline in gas output.
The average oil price stood at US$43-45 a barrel last year, much lower than in previous years and accounting for 85% of the 2015 average. However, PV Gas managed to obtain a staggering VND60 trillion in revenue and VND7.19 trillion in after-tax profit last year.