Gazprom and PetroVietnam are planning to develop an integrated gas-to-power project in the Vietnamese province Quang Tri that will source gas from the Bao Vang field located in the central part of Vietnam's continental shelf.
In this regard, a memorandum of cooperation has been signed by Gazprom, PetroVietnam and the Quang Tri Provincial People’s Committee.
Gazprom revealed that a special area in the province called the Dong Nam Economic Zone is expected to house the industrial, logistics and port infrastructure of the integrated project.
The Russian gas giant said that as per the memorandum, more exploration will be done at the Bao Vang field for an updated reserves estimate and, if the project is found to be economically viable, then an option for follow-up development will be pursued by the parties.
Currently, the power plant construction project is under consideration at the Vietnamese Ministry of Industry. As per the memorandum, the integrated gas-to-power project will be part of the Vietnamese government plan for the development of the country’s power industry until 2030.
Gazprom management committee chairman Alexey Miller said: “Gazprom and Vietnam have a long history of partnership in a variety of areas. The new joint project will allow us to increase the economic effectiveness of our hydrocarbon exploration and marketing efforts in Vietnam.
“It will also stimulate infrastructure development throughout the country’s central region, including the Dong Nam Economic Zone, and will help preserve the ecological balance thanks to the use of eco-friendly fuel.”
The Bao Vang gas and condensate field was discovered by Vietgazprom, a joint operating company formed by Gazprom and PetroVietnam.
Vietgazprom is involved in exploration in licensed blocks Nos. 111/04, 112, 113 and 129–132 located in Vietnamese waters.
In addition the Bao Vang field, the joint operating company had also discovered the Bao Den gas and condensate field and the Than Bien deepwater petroleum gas field.
Gazprom EP International, which represents Gazprom in the joint venture, has been engaged in commercial gas and condensate production offshore Vietnam alongside PetroVietnam from the Moc Tinh and Hai Thach fields since 2013.