THAI-VIET GAS PLAN AGREED IN PRINCIPLE

Thailand and Viet Nam have signed an agreement in principle a joint venture to develop and market associated gas from fields off southern Viet Nam. Thai Deputy Minister Vira Susangkarakan secured the agreement with a Vietnamese cabinet minister in a visit to Viet Nam last month. The visit was a follow-up to talks this summer on proposed development of offshore associated gas and a related transmission system, along with proposals to build a power plant and fertilizer complex in Viet Nam to take

Sept. 16, 1991

2 min read

Thailand and Viet Nam have signed an agreement in principle a joint venture to develop and market associated gas from fields off southern Viet Nam.

Thai Deputy Minister Vira Susangkarakan secured the agreement with a Vietnamese cabinet minister in a visit to Viet Nam last month.

The visit was a follow-up to talks this summer on proposed development of offshore associated gas and a related transmission system, along with proposals to build a power plant and fertilizer complex in Viet Nam to take the gas (OGJ, July 15, p. 23).

The two ministers now will seek final approval from their respective ministerial councils to put the venture on a fast track.

Vira said both countries will set up working groups to negotiate details on how to implement the program. He hopes to complete an agreement before the current Thai government term expires during second quarter 1992.

Petroleum Authority of Thailand (PTT) would be the core Thai investor in the proposed joint venture with Vietsovpetro and other Vietnamese entities.

PHASED PROGRAM

Tentative plans involve a phased program with the first phase calling for utilization of 70 MMcfd of associated gas currently being flared in Bach Ho (White Tiger) field about 120 km south of Vung Tao near Ho Chi Minh City.

The first phase also would see installation of a subsea gas pipeline and construction of a gas processing plant, 300,000 kw power plant, and 1 million ton/year fertilizer complex.

Longer term, a second phase involves development of associated gas from Dai Hung (Big Bear) oil field farther south and laying a 700 km subsea gas line to link with PTT's pipeline network in the Gulf of Thailand.