PV GAS signs contracts for Thi Vai LNG – Nhon Trach project chain

20 May, 2020

Attending the signing ceremony were Mr. Le Van Chau, Deputy Secretary of the Party Committee of the Centrally-run Businesses’Sector; Mr. Dang Hoang An, Deputy Minister of Industry and Trade; Ms. Nguyen Thi Phu Ha, Vice Chairman of State Capital Management Committee.

PVN was represented by Mr. Tran Sy Thanh, member of the Party Central Committee, Chairman of the Board of Directors; President and CEO Nguyen Vu Truong Son and members of the Board of Directors, Executive Management Board, leaders of the Divisions/ Administration Office of the Group; Leader of PetroVietnam Gas Joint Stock Corporation (PV GAS), PetroVietnam Power Corporation (PV Power), PetroVietnam Technical Services Corporation (PTSC) and Samsung C&T Contractor.

PV GAS signed “Contract for design, procurement of equipment and materials, construction and trial operation of Thi Vai LNG storage project” with Samsung C&T/ PTSC General Contractor

Implementing the pioneer mission with the goal to ensure the supply of gas for existing customers and new power plant projects, PVN and its subsidiaries have been actively developing a chain of gas-power projects using imported LNG according to the “Master plan for development of Vietnam’s gas industry up to 2025 and orientation to 2035” approved by the Prime Minister.

PV GAS signed “Frame Contract for LNG supply and consumption for Nhon Trach 3 & 4 Power Plant project” with PV Power

Delivering speech to open ceremony, PV GAS General Director Duong Manh Son said: in front of the requirements of ensuring national energy security, maintaining the economic growth, on the basis of reports and proposals of PV GAS, PV Power, PVN and Ministry of Industry and Trade, the Prime Minister issued Document No. 212/ TTg-CN dated 13th February 2017 on planning Nhon Trach 3 & 4 Power Plants using LNG from Thi Vai Terminal and Notice No. 03/TB-VPCP dated 4th January 2019 defining principles of same gas price and output consumption. These are important decisions and directions as a basis for PV GAS to deploy the LNG 1 MMTPA Storage Project at Thi Vai and for PV Power to implement Nhon Trach 3 & 4 Power Plant Project.

PV GAS General Director Duong Manh Son delivered speech

According to PV GAS General Director Duong Manh Son, the appearance of Thi Vai LNG Terminal and Nhon Trach 3 & 4 Power Plants will contribute to ensuring the gas and electricity demand for the key economic region in the Southeast.  “For the first time Vietnam has LNG power plant and PV GAS is proud to be selected as LNG supplier – the energy source first appear in Vietnam” said PV GAS General Director. Being designed and constructed with the most advanced technology in the world, by leading experienced contractors from Japan, Korea, UK, Thi Vai LNG Terminal will become the most modern project in Vietnam in this area, bringing green and environmentally friendly energy.

Thi Vai LNG – Nhon Trach Power Gas Project Chain includes 1 million ton LNG Import Terminal Project in Thi Vai and Nhon Trach 3 & 4 Gas Power Plant Project, in which: LNG Thi Vai Terminal Project is invested by PV GAS with a capacity of 1 million ton of LNG/year in phase 1, expected to complete by 2022, and a capacity of 3 million tons of LNG/year in phase 2, expected to complete in 2023. LNG Thi Vai terminal is capable of receiving LNG vessels up to 85,000 DWT with main items of Phase 1 including LNG tank of 180,000 m3 and technology equipment designed according to the latest versions of Vietnamese and international standards… The total investment for phase 1 is about 286 million USD. After completion in 2022, about 1.4 billion m3 of gas will be supplied to the consumers including Nhon Trach 3 & 4 power plants, industrial customers and partly compensate for the gas shortage in the country after 2022.

Project for Nhon Trach 3 and 4 power plants is invested by PV Power with a total capacity of 1500MW (about 750MW each plant) using LNG as main fuel from LNG Thi Vai terminal, with a volume of 0.57 million tons/ year/ factory (reserve of DO oil), construction area of about 34.5 ha, total investment of about 1.408 billion USD. It is expected that Nhon Trach 3 power plant is completed and put into operation in the fourth quarter of 2022 and Nhon Trach 4 power plant is put into operated in the fourth quarter of 2023. It will help supplement the power supply for the Southeast region.

In addition to bringing benefits to all participants, more importantly, the appearance of LNG Thi Vai Terminal and Nhon Trach 3 & 4 Power Plants will contribute to ensuring the gas and power demand for industrial areas that is increasingly urgent in the key economic region in the Southeast. LNG Thi Vai Terminal will be an important link in supplying renewable gas for gas consumers, including the chain of Nhon Trach 3 & 4 power plants. Together with LNG Son My Terminal with capacity upon completion of 10 million tons of LNG/year, energy demand for the Southern region in the future will basically be guaranteed.

PVN Vice President Le Manh Hung spoke at the signing ceremony

On behalf of the Group’s leaders, Vice President Le Manh Hung congratulated PV GAS and the partners for undergoing negotiation successfully and concluding contract; at the same time, he emphasized the signing ceremony marked an important step in the process of implementing LNG Thi Vai – Nhon Trach power gas project chain, as a premise to ensure the success of the project chain.

Emphasizing it was a particularly important project in ensuring energy security, raw materials for electricity production and was always paid special attention by the Party and State leaders, especially in the context of gas shortage and decline, Vice President Le Manh Hung belived, with the commitments and efforts of the parties, the project would be implemented effectively and on schedule.

Affirming that PVN pledged to continue following and supporting PV GAS and PVPower in the implementation of projects, Vice President Le Manh Hung also hoped leaders of the Government, ministries/ branches, State Capital Management Committee continue attention and support so that the projects would be implemented on schedule, effectively and safely.

Deputy Minister of Industry and Trade Dang Hoang An spoke at the signing ceremony

Attending and speaking at the ceremony, Deputy Minister of Industry and Trade Dang Hoang An highly appreciated the parties for their efforts to drastically implement the project-related contents to come to the signature. The Deputy Minister affirmed the oil and gas projects and works were always given attention and support by the Government and the Ministry of Industry and Trade.

However, the immediate task was still difficult, thus leaders of the Government and the Ministry of Industry and Trade required PVN, PV GAS, Joint Venture General Contractor of EPC and PVPower… to be proactive and determined to promote well the experience gained from previous projects as well as closely coordinate with the Ministry/ Industry and authorities at all levels to well manage construction investment with an aim to implement the project safely, ensuring quality and schedule.

Deputy Minister Dang Hoang An believed the works completed and put into operation would contribute to stabilizing the national energy security, supplementing gas and electricity shortage in the Southeast region and contributing to economic growth in the Southeast region. It was also a breakthrough in the process of forecasting and meeting the demand for energy resources to serve the socio-economic development, industrialization and modernization of the country that was always given special attention from the Party and the State.

PVN Chairman of the Board of Directors Tran Sy Thanh presented medals to representatives of the contract signatories

On the occasion, PVN and the signatories sincerely thanked the Government, Ministries/ Central branches and local agencies for close guidance and support to the success of Vietnam oil and gas industry in the past time. PVN wished to continue receiving such valuable attention and support to promote the implementation of projects, contribute to ensuring energy security, sustainable economic development and social welfare for the country.

Author: PVN Views: 143


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