Mitsui Invests $560 Million In Vietnam Gas Project
The Block B - O Mon gas pipeline system will stretch over 430 kilometers, making it the longest pipeline in Vietnam.
The Japanese company, through its branch Mitsui Oil Exploration Company (MOECO), has finalized its investment for Project B, located in southwest Vietnam’s Malay-Tho Chu basin. This project, also known as the Vietnam Gas Project, involves developing a gas field and a pipeline system connecting it to the O Mon Power Complex in Can Tho City, the main hub in the Mekong Delta.
Mitsui sees natural gas and LNG as vital solutions during this transition period and aims to contribute to a more sustainable, decarbonized society through the project. They’ve been exploring the field since 1996.
The total investment needed for the project is estimated to be at least $10 billion, with Moeco’s share of the development cost coming to around $740 million, mainly for offshore installations and pipeline construction.
The project’s production capacity is expected to reach 18.3 million cubic meters per day. In addition to developing the gas field itself, the project will also involve building infrastructure for gas transportation.
Other partners in this endeavor include Petrovietnam Exploration Production Corporation (PVEP), Petrovietnam Gas Corporation (PV Gas), and PTT Exploration and Production Public Company from Thailand.
According to data analytics company GlobalData, peak production for Block B is forecasted to be in 2046, with operations expected to last until 2054.
The operator for Block B is Petrovietnam’s subsidiary Phu Quoc Petroleum Operation Company (Phu Quoc POC), which secured project management support services from various suppliers in May 2023.
The services, totaling $50 million, will be provided by a consortium between Orion Petroleum and Petrovietnam Logistics Services, another consortium involving Petrovietnam’s PVChem and Amoria Bond, and Petrovietnam Drilling and Well Services Corporation.
The Block B - O Mon gas pipeline system will stretch over 430 kilometers, making it the longest pipeline in Vietnam.
Aside from supplying the O Mon Power Complex in Can Tho City, gas from Block B will also support a power and fertilizer complex in Ca Mau, the southernmost province of Vietnam, as well as other consumers in the Mekong Delta.
Japanese company Marubeni Corporation has already inked a deal with Petrovietnam to supply Block B natural gas to Marubeni’s O Mon 2 thermal power project, which is under construction and is set to be a significant contributor to Vietnam’s energy needs.
Furthermore, Marubeni has ventured into a joint project called Quang Ninh LNG Power JSC to explore the feasibility of a LNG-to-power project in the northern province of Quang Ninh, with an estimated investment of $2 billion.