PM attends signing of largest natural gas-powered project in Vietnam

PM attends signing of largest natural gas-powered project in Vietnam

Hà Nội, October 30, 2023 – Prime Minister Phạm Minh Chính presided over a momentous signing ceremony on Monday in Hà Nội, marking the official launch of the Block B-Ô Môn Gas-Power Chain Project. This ambitious energy project is a collaborative effort between the Vietnam Oil and Gas Group (Petrovietnam) and a consortium of partners.

In his address during the event, Prime Minister Phạm Minh Chính expressed his confidence in the successful realization of the $12 billion project, which has been in the making for over two decades. This project is the largest of its kind in Southeast Asia and is poised to bring significant economic benefits to the region.

The Block B-Ô Môn Gas-Power Chain Project encompasses various phases, including the upstream Block B field development, midstream Block B-Ô Môn pipeline, and downstream Ô Môn I, II, III, IV gas-fired power plants. Once completed, the project is anticipated to produce approximately 5.06 billion cubic meters of gas annually. This gas will power the Ô Môn Power Centre, with a combined installed capacity of 3,800 MW, and generate an estimated $30 billion in revenue for the state and $11 billion for international partners.

Beyond its economic impact, the project is expected to play a pivotal role in enhancing national security and defense while affirming Vietnam’s sovereignty over sea and islands. It will also serve as a catalyst for job creation and economic development in the region.

Moreover, the project aligns with the Vietnamese government’s commitment to achieving net-zero emissions by 2050, as pledged at the COP26 Conference. The Prime Minister lauded the collaborative efforts of Vietnamese government agencies and ministries, along with international partners, in overcoming numerous challenges and obstacles to realize this significant project.

Petrovietnam’s CEO, Lê Mạnh Hùng, emphasized the government’s trust in Petrovietnam, tasking the group to be a key investor in all aspects of the project. While there were some delays due to the project’s complexity, most major issues have been successfully resolved.

International partners, including the Mitsui Group from Japan, MOECO Group (Japan), and PTTEP Group (Thailand), expressed their appreciation for the Vietnamese government’s support and attention to the project. They pledged to execute the project with world-class safety standards.

The Prime Minister urged all involved governmental ministries and agencies to continue their support for the project and create a conducive environment for international investors and partners. He emphasized the importance of safeguarding the rights and interests of these partners.

This project is not only a cornerstone for regional socioeconomic growth but also a testament to Vietnam’s industrialization and modernization and its cooperative relationships with Japan and Thailand.

The signing ceremony witnessed the formalization of crucial documents, including the Block B Framework Agreement between the Vietnam Oil and Gas Group and its partners, a consensus record on the Ô Môn I gas sales contract, and the awarding of the EPCI#1 contract between the Phú Quốc Oil and Gas Operations Company and a consortium of general contractors.

Source: Vietnam News Agency (VNA/VNS)

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