PM divides multi-billion dollar power project among competing provinces
The US’ ExxonMobil Corporation and Vietnam’s state-run oil and gas group PetroVietnam’s multi-billion dollar gas-to-power complex is a step closer to implementation as Prime Minister (PM) Nguyen Xuan Phuc has approved the project location.
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The exact amount of investment capital has not been released, but initial information suggested that the gas-to-power complex could cost as much as US$20 billion, while PetroVietnam referred to a figure closer to US$10 billion. However, according to the latest news, the project’s investment capital is US$4.6 billion.
ExxonMobil expects to exploit 8-9 billion cubic metres of gas per year, 1-3 billion cubic metres of which will go to Dung Quat refinery for processing.
On account of the complex’s large scale and the involvement of the world-leading oil and gas group, both Quang Nam and Quang Ngai provinces are making great efforts to win ExxonMobil’s investment.
Notably, Quang Nam established an investment promotion working group for the project, while Quang Ngai submitted official documents to the Ministry of Industry and Trade and relevant ministries to garner support as well as offer viable locations for the complex.
The three locations Quang Ngai authorities suggested to the investors for construction are some 85 kilometres from offshore gas blocks, a rather convenient distance during both the implementation and operations stages.
According to the PM’s decision, both Quang Nam and Quang Ngai will benefit from the project, especially Chu Lai Open EZ and Dung Quat EZ, which receive development incentives from the government.
Next week, ExxonMobil expects to join the entrepreneur group of the US-ASEAN Business Council arriving to Vietnam to look for investment opportunities.
It is considered an important visit, impacting ExxonMobil’s investment decisions in Vietnam in the future.
