ExxonMobil Plans Vietnam Power Projects
ExxonMobil and joint-venture partners PetroVietnam and PetroVietnam Exploration Production Corporation are advancing plans for a multi-billion dollar integrated gas-for-power development in central Vietnam, the US major said January 30. The company has awarded the contract for front-end engineering and design, and is filing appropriate permits, planning applications and other preparatory work for the proposed development.
Vietnam is also considering importing LNG in order to generate electricity, with PV Gas having agreed earlier this month to import LNG to fuel 1.5 GW of gas-fired plants.
If ExxonMobil receives the permits, it will lead the construction and operation of the project, which will produce and treat natural gas from the Ca Voi Xanh field, offshore in block 118. The proposed project consists of an offshore platform, a pipeline to transport the gas to shore, an onshore gas treatment plant and pipelines that feed gas to third-party power plants to generate electricity locally.
“The Ca Voi Xanh project could bring a number of long-term benefits to the country, including cleaner, reliable power to help drive economic growth and improved living standards,” said ExxonMobil. “If the project goes forward, it is estimated to generate $20bn in revenue to the Vietnamese government, thousands of local jobs and improved energy security from domestic gas development.”
Vietnam Electricity, PetroVietnam and Sembcorp are in discussions to build and operate the power plants. The proposed base development is expected to generate 3 GW of power, or about a tenth of Vietnam’s total power demand.
A final investment decision, targeted in 2020, will be based on a number of factors, including regulatory approvals, government guarantees, executed gas sales agreements and economic competitiveness.