At the signing ceremony. — Photo

HÀ NỘI — Vietnam National Oil and Gas Group (Petrovietnam) on Thursday signed four trade agreements with partners for the crucial Block B-Ô Môn gas-power chain project, paving the way for the project implementation.

The US$12 billion project is Việt Nam’s key energy project, encompassing multiple component projects, including upstream, pipeline and downstream power plant projects. It involves participation from various investors, both foreign and domestic, such as MOECO, PTTEP, Marubeni from Japan and Thailand, alongside Vietnamese investors like Petrovietnam, PVEP, PV Gas, EVNGENCO2 and WTO.

The chain project is situated in the offshore region of southwest Việt Nam, within the Malay – Thổ Chu basin on the Vietnamese continental shelf. All gas resources extracted from the project will be transported via pipeline to the Ô Môn District in Cần Thơ Province to fuel the Ô Môn I, Ô Môn II, Ô Môn III, and Ô Môn IV power plants, collectively generating approximately 3,810 MW of power capacity for the Cà Mau area.

During the stabilisation phase, the project is expected to supply the power plants with approximately 5.06 billion cubic meters of gas annually, yielding an estimated electricity output of around 22 billion kWh.

The signed agreements encompassed the Gas Purchase and Sale Contract (GSPA) for the project, committing to deliver approximately 5.06 billion cubic meters during the stabilisation period.

The second agreement involves PVN hiring transporters to convey this gas volume to shore, utilising the landing station in Kiên Giang and an onshore pipeline from Kiên Giang to Ô Môn.

The third  is the Connection, Operation, and Service Contract (TOSA) between the mine owners and transporters. Upon reaching shore, the Block B gas will be allocated and supplied by PVN to power plants in the Ô Môn area.

The last is a contract for selling Block B gas between PVN and Power Generation Corporation 2 (EVNGENCO2) to supply a portion of Block B gas to the Ô Môn I power plant, with an annual volume of about 1.265 billion cubic metres.

However, Petrovietnam highlights the necessity to address major bottlenecks in policy mechanisms for mobilising and operating the power system for Block B gas-consuming power plants, secure ODA capital for the Ô Môn III power plants, streamline approval procedures for advancing the Ô Môn IV power plant project, and negotiate and sign power purchase agreements.

Petrovietnam's General Director, Lê Ngọc Sơn, underscored the paramount importance of successfully operationalising the Block B project. Its development is expected to significantly contribute to budget revenue, socio-economic progress, and national energy security.

Sơn hopes to garner support from the Vietnam Electricity Group (EVN) in negotiating and finalising power purchase contracts, aiming to ensure that power plants utilising Block B gas fully utilise the gas volume they have contributed to purchase. — VNS