Central Vietnam province seeks to develop power from Ken Bau field gas

The central province of Quang Tri is seeking the government’s approval to extract gas from the Ken Bau field for power production, as it is a large oil and gas reserve located near the province’s coastline.

The field, located in Block 114, lies offshore on the northern Vietnam continental shelf within the Song Hong Basin, approximately 65 km from the mainland of Quang Tri province.

In 2020, the provincial People's Committee held a working session with Eni Group, an Italian energy conglomerate. Established in 1953 and headquartered in Rome, Eni has been operating in Vietnam since 1965, exploring multiple offshore blocks covering more than 30,000 square kilometers.

Eni Vietnam, a subsidiary of Eni Group, has surveyed the Ken Bau field, discovering reserves of 7-9 trillion cubic feet (Tcf) of natural gas and about 400-500 million barrels of oil.

At the time, Quang Tri's leadership emphasized the benefits of connecting the Ken Bau field to the Southeast Quang Tri Economic Zone, based on the approved plans for an energy complex, LNG power projects, the development of the gas industry and gas pipelines, and connections to the 220kV and 500kV national power grids.

The local government invited Eni Group to conduct further surveys of the field and established a task force to support the successful implementation of Eni's projects in the region.

In the National Power Development Plan VIII (PDP VIII), the Ministry of Industry and Trade (MoIT) stated that the Ken Bau field, with its initial large reserves, could potentially supply gas for the development of gas-fired power plants with a capacity of approximately 4,000 to 6,000 MW. However, two exploration drilling attempts have been unsuccessful, and the development is now slated for 2031-2035.

During a recent press conference held by the provincial People's Committee, Nguyen Truong Khoa, director of the Department of Industry and Trade, said that the province had proposed the exploitation of the Ken Bau field to the Ministry of Industry and Trade and other ministries following the visit of Party General Secretary and then President To Lam to Quang Tri in 2024.

Khoa stated that Eni Vietnam is focusing on the final survey phase but is facing numerous challenges. As a result, the MoIT, along with other agencies, has not yet developed an official exploitation plan for the field.

“The Ministry of Industry and Trade is currently considering Quang Tri’s proposal and will discuss further with other ministries to create favorable conditions for accessing and exploiting this field,” Khoa said.

Ha Sy Dong, acting Chairman of the provincial People's Committee, explained that the exploitation of gas from the Ken Bau field depends on the investor. The province has held multiple working sessions with Eni Group and even signed a memorandum of understanding with the hope that an industrial zone for gas production, serving both local consumption and export, will be established.

However, the company is still considering other locations and seeking investment capital. Dong acknowledged that this is a long-term process, and no immediate progress is expected.

To achieve its goal of becoming the energy hub of central Vietnam, Dong revealed that Quang Tri has proactively proposed to the Prime Minister and the MoIT the inclusion of 60 onshore wind power projects with a total capacity of 4,600 MW, three offshore wind projects with 2,600 MW, 19 solar power projects with 1,400 MW, more than 2,000 MW from pumped-storage hydroelectric projects, and approximately 4,500 MW from gas power projects in the PDP VIII.