The co-operation between Vietnam Oil and Gas Group (PetroVietnam) and Malaysia’s Petroliam Nasional Berhad (Petronas) will contribute to ensuring the energy security for the southwest region in general and the Ca Mau gas-power-fertiliser complex in particular.
|PetroVietnam and Petronas will co-operate on the Ca Mau gas-power-fertiliser complex |
On March 15, PetroVietnam and Petronas signed a Head of Agreement (HoA) for the sale and purchase of additional gas to the Ca Mau area.
Under the agreement, the complex would receive on billion cubic metres of additional gas per year from the end of 2019 and beginning of 2020 to solve the gas shortage.
Besides, the two parties will continue to negotiate a gas purchase contract following the signing to ensure the stable and effective operation of the complex as well as energy security of the country.
Speaking at the signing ceremony, Nguyen Quoc Thap, deputy general director of PetroVietnam, said, “After the success of the HoA, PetroVietnam expects that the two parties will sign a contract by the end of 2019 in order to start the sale and purchase in 2020.”
Maliki Kamal Yasin, deputy general director of Petronas, affirmed that the signing marks a start for the next contracts between the two parties.
The Ca Mau gas-power-fertiliser project was approved by the prime minister in 2001 with the aim to explore and use the country’s natural gas resources effectively. In October 2012, PetroVietnam held a ceremony to inaugurate the complex.
The $2 billion complex includes a PM3-CM gas pipeline, the CM1 and CM2 power plants, the Ca Mau fertiliser plant, and other facilities.
The first project is the PM3-Ca Mau gas pipeline carrying gas from the PM3-CAA gas well (in the overlapping area between Vietnam and Malaysia in the Gulf of Thailand) and Block 46-Cai Nuoc (off the coast of Vietnam) to the complex to produce electricity and fertiliser. The other projects are the Ca Mau No.1 and 2 gas power plants with a combined capacity of 1,500MW, and the Ca Mau fertiliser plant with the designed output of 800,000 tonnes per year.