PetroVietnam, Chevron to build $1 billion gas line

PetroVietnam Gas Corp. (PV Gas) has formed a partnership with a Chevron Corp.-led consortium to construct a $1 billion pipeline that would transport natural gas from Chevron’s fields in southern Vietnam to the Mekhong Delta region.

By an OGJ correspondent
BANGKOK, Mar. 16
-- PetroVietnam Gas Corp. (PV Gas) has formed a partnership with a Chevron Corp.-led consortium to construct a $1 billion pipeline that would transport natural gas from Chevron’s fields in southern Vietnam to the Mekhong Delta region.

PV Gas agreed to hold a 51% stake in the venture, which will involve the building of a 398-km pipeline—246 km offshore and 152 km onshore. Other consortium participants include Mitsui Oil Exploration Co. (Moeco) and Thailand's PTT Exploration & Production PLC (PTTEP).

The pipeline will transport as much as 18.3 million cu m/day of gas from Blocks B, 48/95, and 52/97, which lie off southwestern Vietnam.

PV Gas will serve as the line’s operator. The line will supply gas to industrial users in the southern province of Ca Mau, including to a 3,000-Mw electric power plant as well as to a fertilizer complex.

Stakeholders in Blocks B and 48/95 are Chevron 42.38%, Moeco 25.62%, PetroVietnam Exploration & Production Corp. 23.5%, and PTTEP 8.5%).

Chevron holds a 43.4% share in Block 52/97, while PetroVietnam E&P holds 30%, Moeco 19.6%, and PTTEP 7%.

The Chevron-led group is preparing gas development from its offshore gas fields, in line with a heads of agreement for front-end engineering and design concluded in July 2009 with Vietnam Oil & Gas Group.

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