Exxon Mobil speeds up major project in Vietnam

Exxon Mobil speeds up major project in Vietnam

The US group Exxon Mobil has accelerated the pace of its investment in a 20-billion-USD gas-electricity complex in Vietnam.

A source from the group said that in a couple of weeks, Exxon Mobil will submit documents such as assessments on gas reserves, site selection and implementation plan to the Vietnam National Oil and Gas Group (PetroVietnam) and the Ministry of Industry and Trade.

The investment plan was initiated several years ago when Exxon Mobil discovered gas reserves offshore central Vietnam and decided to exploit it for commercial purposes, serving power generation in Vietnam .

The group’s representative expressed hope that stronger activities will be implemented in the next months to promote investment in this project.

However, the company is concerned about electricity and gas prices, he said, expressing its wish to apply market principles for both.

Late last year, the Dau tu (Investment Review) newspaper reported that Exxon Mobil and PetroVietnam planned to build a gas-electricity complex in the central region, using gas products from Lots 117, 118 and 119.

According to the plan, the two sides will use a 200-ha plot, half of which will be for the building of a 1,500-MW power plant. The capacity of the plant will be raised to 4,000-5,000 MW and there will also be a gas processing facility.

Quang Ngai is emerging as a destination for the project. The province has recommended four locations some 75-85 km from the lots.

The sites are all in the Ca Voi Xanh (Blue Whale) platform, for which PetroVietnam and its US counterpart signed a development deal during President Truong Tan Sang’s July 2013 visit to the US .

Quang Ngai has paid special attention to the project, local leaders said, adding that the province will offer special incentives to the investor.

The province has also suggested PetroVietnam choose the Dung Quat Economic Zone as the location for the project, aiming at turning it into the nation’s oil refinery centre.-VNA

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