PetroVietnam, ExxonMobil ink gas-to-power deal

State-owned PetroVietnam signed a deal with the U.S.-based energy giant ExxonMobil to develop the largest gas-to-power project in Vietnam.

The natural gas would be sourced from the Ca Voi Xanh (Blue Whale) gas field located in the South China Sea about 80 km off the coast between Vietnam’s Quang Nam and Quang Ngai central provinces.

The field is the biggest gas discovery in Vietnam so far, estimated to hold about 150 billion cubic meters of reserves.

PetroVietnam signed the framework deal with a Vietnamese unit of ExxonMobil.

The deal is important for the two company’s contractors to complete the preliminary front end engineering design so that they can start commercial gas production from the giant field in 2023, PetroVietnam said.

In the first phase, the gas from the project would be supplied to a gas plant in central Vietnam that would include four gas-to-power units with a combined capacity of about 3,000 megawatts.

The project would contribute nearly $20 billion to the state budget, PetroVietnam said.

LNG World News Staff