PetroVietnam subsidiaries ink deal on projects

Three subsidiaries of the State-owned Vietnam Oil and Gas Group (PetroVietnam) signed a business cooperation contract (BCC) on August 3 to carry out a chain of gas, power, and service port projects.

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Representatives of PV Gas, PV Power and PTSC (front) at the contract signing ceremony on August 3

The three are the PetroVietnam Gas Joint Stock Corporation (PV Gas), the PetroVietnam Power Joint Stock Corporation (PV Power), and the PetroVietnam Technical Service Joint Stock Corporation (PTSC).

PTSC General Director Le Manh Cuong said the contract is to implement a chain of gas, power, and service port projects on the basis of business performance-based risk and profit sharing along with the optimisation of financial resources, personnel, and technical infrastructure.

In the first phase, the three companies will invest in new infrastructure to supply re-gasified liquefied natural gas (LNG) to the Nhon Trach 1 and Nhon Trach 1A power plants.

They will continue to consider investment in the Nhon Trach 5 power project in the second phase, with an expected capital contribution of 51% by PV Gas, 34% by PTSC, and 15% by PV Power.

General Director of PetroVietnam Le Manh Hung said the BCC will help consolidate the group’s business model and fully capitalise on every resource of its subsidiaries, thereby improving its competitiveness and prestige.

Following that, PV Gas and the PetroVietnam Chemical and Services Joint Stock Corporation (PV Chem) also inked a cooperation contract.

Under this deal, PV Gas will support PV Chem’s provision of products and technical and industrial services of the latter’s strength for the former’s production and business activities and projects.

PV Gas agreed in principle to supply cold energy from its LNG warehouse projects to industrial gas plants of PV Chem and its partners. The two will also look into plans to use cold energy from PV Gas’s LNG warehouses to enhance the economic benefits of LNG projects and environmental protection efforts.

The signing of the contracts is a step towards implementing PetroVietnam’s package of measures in response to the recent “twin crises” of COVID-19 and tumbling oil prices.

VNA