BP Vietnam said on March 21 it had signed an agreement with two Vietnamese partners to establish a framework for natural gas supply for the development of a new power complex in the country’s south.
The agreement will create a foundation for the development of new gas fields in the Nam Con Son Basin, off the country’s southern coast to supply fuel for the Nhon Trach complex in Dong Nai Province.
A BP Vietnam spokesman said that the deal signed over the weekend with PetroVietnam and Electricity of Vietnam (EVN) was a consensus to use Nam Con Son gas to fuel power stations in Nhon Trach.
EVN had considered different options, including coal, diesel and natural gas for the power complex, with the first station expected to start operation by 2008.
The 2,640 MW complex will use around 2.5 billion cubic metres of gas a year from Hai Thach and Moc Tinh gas fields in Blocks 05.2 and 05.3, which are next to Block 06.1 in the Nam Con Son Basin.
Gas will be transported through a pipeline from Phu My to HCM City. PetroVietnam has adjusted the gas pipeline project, which will be divided into two phases.
The Ministry of Industry has approved the first phase of the project to install a gas pipeline from Phu My to Nhon Trach and Hiep Phuoc. PetroVietnam is to complete the feasibility study for the project.
Deputy prime minister Nguyen Tan Dung recently agreed to put the Phu My HCM City gas pipeline and Nhon Trach power complex on the list of key oil and gas projects that need to be on fast track.
PetroVietnam says that the investment study for the new power complex will be completed in the first quarter of this year.
The gas-fuelled Phu My power complex, which was inaugurated last year, is Vietnam’s largest, with six power plants having a combined capacity of 3,859 MW and meeting 40% of the country’s annual electricity demand.
Phu My consumes 4.5 billion cubic metres of gas a year.