Gazprom EP International B.V, a subsidiary of Gazprom Group – Russia’s largest natural gas producer – has been approved in principle by the prime minister to develop a gas-to-power plant as proposed by the Ministry of Industry and Trade (MoIT) and the Ministry of Planning and Investment (MPI).
|Gazprom approved to develop 340MW gas-to-power plant in Quang Tri |
The prime minister assigned the MoIT, the MPI, and other relevant authorities to guide Gazprom EP International B.V to complete administration procedures for being granted the investment certificate.
Previously, Gazprom exploited gas reserves at two fields namely Bao Vang and Bao Den. As a result, the total gas reserves exploited by the company amounted to 57.88 billion cubic metres. The company decided to invest $1.32 billion to develop rigs and an oil pipeline system to transport oil to the mainland and generate 500 million cubic metres of gas per year. However, after consideration, the investor saw that the investment capital is too high, thus, it switched from gas to electricity sales.
In 2017, the investor and the Quang Tri People’s Committee signed a memorandum of understanding (MoU) on co-operating to implement a project to build a gas treatment plant from Bao Vang field and a gas-to-power project in the southeast Quang Tri Economic Zone. The province had also made great efforts by organising workshops with the participation of Vietnam National Oil and Gas Group (PetroVietnam) and other related organisations to promote the implementation of this significant project.
According to information from Vietnam Energy Magazine, Bao Vang gas field was discovered by the joint venture company between Gazprom and PetroVietnam, Vietgazprom, in October 2010. The products of the field include 104.5 thousand cubic metres of natural gas and 7.32 cubic meters of condensate per day, and no CO2 and H2S.
It is not the first time that Gazprom invests in Vietnam. In 2015, Gazprom and PetroVietnam signed an agreement on the major terms and conditions of developing the Nagumanovskoye (Orenburg Region) and Severo-Purovskoye (Yamal-Nenets Autonomous Area) fields. Gazpromviet (Gazprom – 51 per cent, PetroVietnam – 49 per cent) holds development licences for both fields.