THAILAND, VIET NAM AGREE TO TAP OFFSHORE ASSOCIATED GAS
The Petroleum Authority of Thailand (PTT) and Petrovietnam have reached agreement in principle for a joint venture to build a $140 million gas processing plant in Viet Nam using offshore associated gas.
Viet Nam's Vice Minister of Heavy Industry Pham Quoc Tyong said in Bangkok a memorandum of understanding for the plan, part of a broad cooperative venture on oil and gas between the two nations, has been concluded between the state oil agencies.
He said officials of the two bodies are working on the project on the basis that they equally share costs and that part of its gas production can be exported, possibly to Thailand.
The gas processing plant, to be built in Vung Tao near Ho Chi Minh City, would have a capacity of about 10.5 bcf/year. Gas would come by pipeline from Bach Ho oil field off southern Viet Nam (see map, OGJ, July 15, p. 25).
Plant production output of liquefied petroleum gases would be about 150,000-200,000 metric tons/year. PTT wants to import all of the LPG to meet rapidly growing Thai demand.
Nguyen Xuan Chuan, director for the Ministry of Heavy Industry's International Cooperation Department, said PTT is expected to submit a feasibility study of the project to Petrovietnam in February. Timeframe for completion of the plant has yet to be decided, but it likely will be in the mid-1990s.
PETROLEUM COMPLEX
The proposed gas processing plant is part of a $2.1 billion petroleum complex being planned in Vung Tao and its surrounding area, where PTT has been trying to play a major role.
The overall project, intended as a catalyst for economic development in Viet Nam, focuses on developing oil and associated gas and oil off southern Viet Nam. It includes a $120 million gas pipeline, a $470 million urea plant, a $340 million, gas fired, combined cycle power plant, and a $1 billion refinery.
The gas processing plant appears to be the only project Thailand and Viet Nam have agreed to undertake so far. There is no sign they could agree on other projects as PTT originally envisaged.
The pipeline, to be laid by Viet Nam, is to extend from Bach Ho about 120 km south of Vung Tao to landfall near the gas processing, urea, and power plants in the Vung Tao area. Vietnamese authorities hope to complete pipelaying in 1993.
Meanwhile, Vietnamese officials said the Canadian company Protech has expressed an interest in undertaking the proposed urea plant, whose economic viability has come into question. The Canadian firm is reviewing a feasibility study of the project the Japan Consulting Institute, a Japanese government agency, completed. JCI suggested that the plant have a capacity of 600,000 tons/year to be economic. Estimated investment is $470 million.
Meantime, Viet Nam is proceeding with plans to build a 340,000 kw, gas fired power plant at Baria, about 40 km west of Vung Tao.
Vietnamese officials are negotiating with Japan's Marubeni and Nissho Iwai to carry out the project with Japanese loans. Construction is due to begin in 1993.
Officials also are reviewing proposals for a refinery project submitted by France's Total, Royal Dutch/Shell Group, a combine of Sumitomo and Nippon Mining, a combine of Nissho Iwai and Japan's JGC, C. Itoh, and Tomen (formerly Toyo Menka).
Investment for the proposed refinery, capable of processing 70,000 b/d of indigenous crude, is estimated at $900 million to $1.2 billion.
Hanoi has not decided whether to fund the refinery project investment through a joint venture with foreign firms or solely by the government.
The Petroleum Authority of Thailand (PTT) and Petrovietnam have reached agreement in principle for a joint venture to build a $140 million gas processing plant in Viet Nam using offshore associated gas.
Viet Nam's Vice Minister of Heavy Industry Pham Quoc Tyong said in Bangkok a memorandum of understanding for the plan, part of a broad cooperative venture on oil and gas between the two nations, has been concluded between the state oil agencies.
He said officials of the two bodies are working on the project on the basis that they equally share costs and that part of its gas production can be exported, possibly to Thailand.
The gas processing plant, to be built in Vung Tao near Ho Chi Minh City, would have a capacity of about 10.5 bcf/year. Gas would come by pipeline from Bach Ho oil field off southern Viet Nam (see map, OGJ, July 15, p. 25).
Plant production output of liquefied petroleum gases would be about 150,000-200,000 metric tons/year. PTT wants to import all of the LPG to meet rapidly growing Thai demand.
Nguyen Xuan Chuan, director for the Ministry of Heavy Industry's International Cooperation Department, said PTT is expected to submit a feasibility study of the project to Petrovietnam in February. Timeframe for completion of the plant has yet to be decided, but it likely will be in the mid-1990s.
PETROLEUM COMPLEX
The proposed gas processing plant is part of a $2.1 billion petroleum complex being planned in Vung Tao and its surrounding area, where PTT has been trying to play a major role.
The overall project, intended as a catalyst for economic development in Viet Nam, focuses on developing oil and associated gas and oil off southern Viet Nam. It includes a $120 million gas pipeline, a $470 million urea plant, a $340 million, gas fired, combined cycle power plant, and a $1 billion refinery.
The gas processing plant appears to be the only project Thailand and Viet Nam have agreed to undertake so far. There is no sign they could agree on other projects as PTT originally envisaged.
The pipeline, to be laid by Viet Nam, is to extend from Bach Ho about 120 km south of Vung Tao to landfall near the gas processing, urea, and power plants in the Vung Tao area. Vietnamese authorities hope to complete pipelaying in 1993.
Meanwhile, Vietnamese officials said the Canadian company Protech has expressed an interest in undertaking the proposed urea plant, whose economic viability has come into question. The Canadian firm is reviewing a feasibility study of the project the Japan Consulting Institute, a Japanese government agency, completed. JCI suggested that the plant have a capacity of 600,000 tons/year to be economic. Estimated investment is $470 million.
Meantime, Viet Nam is proceeding with plans to build a 340,000 kw, gas fired power plant at Baria, about 40 km west of Vung Tao.
Vietnamese officials are negotiating with Japan's Marubeni and Nissho Iwai to carry out the project with Japanese loans. Construction is due to begin in 1993.
Officials also are reviewing proposals for a refinery project submitted by France's Total, Royal Dutch/Shell Group, a combine of Sumitomo and Nippon Mining, a combine of Nissho Iwai and Japan's JGC, C. Itoh, and Tomen (formerly Toyo Menka).
Investment for the proposed refinery, capable of processing 70,000 b/d of indigenous crude, is estimated at $900 million to $1.2 billion.
Hanoi has not decided whether to fund the refinery project investment through a joint venture with foreign firms or solely by the government.
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