PM Chinh attends signing of largest gas-power project

PM Chinh attends signing of largest gas-power project

Hanoi, The Gulf Observer: Prime Minister Phạm Minh Chinh attended a signing ceremony on Monday in Hanoi for the launch of the Block B-O Môn Gas-Power Chain Project between the Vietnam Oil and Gas Group (Petrovietnam) and partners.

Speaking at the event, the PM expressed confidence that after more than two decades of negotiations, overcoming numerous difficulties and obstacles, the US$12 billion chain project, the largest of its kind in the Southeast Asian country to date, will proceed according to plan and achieve great success.

The Block B-O Mon is part of a domestic gas-electricity chain project in Viet Nam’s southern region, which comprises the Block B field development project (upstream), the Block B-O Mon pipeline project (midstream), and the O Mon I, II, III, IV gas-fired power plants (downstream).

Once completed, the chain project is expected to produce up to 5.06 billion cubic metres annually, supplying the four power plants in the O Mon Power Centre, with a total installed capacity of 3,800 MW and a revenue of around US$30 billion for the state and about US$11 billion for international partners.

The chain project is expected to play a major role in strengthening national security, defence, and Viet Nam’s affirmation of sovereignty over sea and islands. Additionally, the construction of the project’s components will create thousands of jobs and facilitate the economic structural transition in provinces in the region.

Moreover, the chain project demonstrates the government’s commitment to achieving net-zero emissions by 2050, as pledged at the COP26 Conference.

With the spirit of promoting harmonious interests and sharing risks, the Vietnamese governmental agencies and ministries, with support from General Secretary Nguyen Phu Trọng, have addressed and overcome numerous issues and difficulties alongside international partners to realise the chain project, said the PM.

According to Petrovietnam’s CEO Le Mạnh Hung, the group has been tasked by the government to act as a key investor in all aspects of the chain project. While there were some delays due to the project’s investment and technical complexity, most major issues have been resolved.

International partners, including the Mitsui Group (Japan), MOECO Group (Japan), and PTTEP Group (Thailand), said they appreciated the government’s timely attention and support for the implementation of the chain project. The partners said the chain project, in return, will receive the best services and be executed with world-class safety standards.

The PM urged all involved governmental ministries and agencies to continue providing support to the chain project and to create favourable conditions for international investors and partners.

He asked the partners to collaborate closely with their Vietnamese counterparts to ensure the successful implementation of the projects, stressing the importance of the partners’ rights and interests to the government.

He said the project is part of the region’s foundation for socioeconomic growth, the country’s industrialisation and modernisation, and the cooperative relationships with Japan and Thailand.

The PM witnessed the signing of crucial documents, including the Block B Framework Agreement between the Vietnam Oil and Gas Group and partners, a consensus record on the content of the O Mon I gas sales contract, and the awarding of the EPCI#1 contract between the Phu Quoc Oil and Gas Operations Company and the consortium of general contractors.