Petrovietnam partners with foreign firms to construct gas pipeline in Vietnam

Published: 15-Mar-2010

Petrovietnam Gas has inked a deal with Chevron Corporation Japan's Mitsui Oil Exploration Co and Thailand's PTT Exploration and Production, to construct a $1 billion gas pipeline in Southern Vietnam.

The state run oil and gas group Petrovietnam, which runs Petrovietnam Gas, will have a 51% stake under the business cooperation contract signed recently in Hanoi.

The three foreign firms would hold the remaining combined 49%. The 400km long pipeline, 246km of which will be under the sea, will transport 6.4 billion cubic meters of natural gas annually from blocks B, 48/95 and 52/97 in Vietnam's southwestern waters to power plants in Can Tho city's O Mon complex. The gas would also be distributed to the gas, electricity and urea complex in the southern province of Ca Mau.

As per sources, Petrovietnam Gas annually supplies material to generate 40% of Vietnam's electricity, 35 %of urea production needs, 10 % of petrol consumption and nearly 70 % of the country's liquefied petroleum gas.

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