Vietnam to speed up preparations for two huge gas projects

The Vietnamese government is seeking to accelerate preparatory work for two mammoth gas projects - Ca Voi Xanh (Blue Whale) and Block B - to soon diversify the country’s energy sources.

Ca Voi Xanh, located off Vietnam's central coast, is potentially Vietnam’s biggest gas project, with an estimated 150 billion cubic meters or so in reserves. Meanwhile, Block B, located off the southwestern coast, is estimated to have 107 billion cubic meters in reserves.

Both projects have suffered long delays. The first would be a partnership between American oil and gas giant ExxonMobil and state-run Petrovietnam. The second will supply crude gas for the major O Mon power center in the Mekong Delta city of Can Tho, and Ca Mau gas-power-fertilizer complex in Ca Mau, Vietnam’s southernmost province.

Partners in the second project include Petrovietnam, state utility Vietnam Electricity (EVN), Japan’s Mitsui Oil Exploration, and Thailand’s PTT Exploration and Production (PTTEP).

Nguyen Hong Dien, Minister of Industry and Trade and standing deputy head of the State Steering Committee for Key Oil and Gas Projects, has instructed ministries, provincial authorities, Petrovietnam, and EVN to speed up preparatory work for both projects.

For Ca Voi Xanh, Dien asked Petrovietnam to closely work with ExxonMobil in order to reach a framework deal in this first quarter for a gas supply contract (GSA). He told Petrovietnam to study the American corporation’s version D in its exploration plan within this quarter, and to submit a report to the ministry for approval.

Petrovietnam and ExxonMobil are required to work with the ministries of Transport and Defense, as well as with Quang Nam province to solve problems related to the plan for the project’s gas pipeline to go through Chu Lai International Airport in the province. The task must be completed in this first quarter.

For Block B, Dien asked the Ministry of Planning and Investment (MPI) to rapidly complete procedures for appraising the O Mon 3 Power Plant project, with a proposal to use the Japanese government’s ODA loans; and to submit it to the Prime Minister for approval this January.

MPI is required to approve the adjustment of the investment certificate for the Block B gas project this month.

Petrovietnam is tasked with coordinating with EVN, Mitsui Oil Exploration, PTT Exploration and Production, as well as the developers of power plants inside the O Mon power center to strictly implement the Ministry of Industry and Trade’s instructions dated November 28, 2022.