Viet Nam's Petrovietnam has signed an initial joint venture agreement with a Canadian combine for a $300 million (U.S.) natural gas pipeline and processing plant.
The combine, Liquigaz/SNC, Montreal, is a partnership of Liquigaz and SNC International Ltd., a unit of SNC Group Inc.
The project will recover gas that is being flared from Viet Nam's Bach Ho oil field in the South China Sea.
The 2 year project will include compressor facilities, a 75 mile pipeline to shore, and a gas processing plant. No capacities are disclosed.
The plant will produce butane, propane, condensate, and residual gas for Viet Nam and markets in Japan and Korea. About 90% of product would be exported at first to pay for project costs.
SNG-Partec Inc., Calgary, engineering arm of SNG Group, will be responsible for project coordination. Liquigaz will set up a distribution network in Vietnam.
Participants will define gas reserves and arrange financing before a final agreement is completed.
The deal is the latest involving Canadian companies in development projects in Vietnam. The Vietnamese government said 11 Canadian projects worth $112 million (U.S.) had been approved at the end of 1991.
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