Petrovietnam Gas to serve northern market with supply from Red River basin

PV Gas, a subsidiary of state-owned energy firm Petrovietnam, will serve the northern market with gas from the Ky Lan field in Blocks 103&107, Vietnam’s Red River basin, that it will receive in the 2032-2051 period.

PV Gas and Petrovietnam Exploration Production Corporation (PVEP), another Petrovietnam subsidiary, signed a memorandum of understanding for the supply last Sunday.

Attending the signing ceremony were Petrovietnam chairman Le Manh Hung, Petrovietnam CEO Le Ngoc Son, PV Gas chairman Nguyen Thanh Binh, PV Gas CEO Pham Van Phong, PVEP chairman Nguyen Thien Bao, and PVEP CEO Tran Hong Nam.

The exploitation and supply of gas will happen in accordance with Prime Minister’s Decision 2233/QD-TTg issued in December 2020 on developing a competitive energy market until 2030 (with vision until 2045).

Under the decision, contractors and investors of new gas projects can negotiate and sell directly to consumers or supply it wholesale to Petrovietnam and PV Gas.

Per the new MoU, the two sides will cooperate to exchange information and sign commercial agreements for the move.

Ky Lan gas field, in the Red River basin offshore Vietnam, is a marginal gas field being developed by PVEP for gas delivery in 2032-2051. The gas field is an important source for consumers in the northern region, PV Gas said.

Besides, PV Gas is operating the Ham Rong-Thai Binh gas system in the northern province of Thai Binh in order to transport gas from the Red River basin and supply industrial consumers at the Tien Hai Industrial Park in Thai Binh province.

The transportation is done via a network of low-pressure gas pipelines and, at the same time, reach remote industrial households via specialized vehicles carrying compressed natural gas (CNG) and liquefied petroleum gas (LPG) products.