PV GAS's signing ceremony of contracts for Thi Vai LNG - Nhon Trach Gas power project chain
On June 24, the signing ceremony of Engineering, Procurement and Construction (EPC) Contract of Thi Vai LNG Terminal Project took place between PVGAS and the Joint Venture of Samsung C&T and PTSC, along with the signing of The LNG supply and consumption contract for Nhon Trach 3 &4 Power Plants between PVGAS and PV Power.
Attending the signing ceremony, there were Mr. Le Van Chau, Deputy Secretary of the Party Central Committee; Mr. Dang Hoang An, Deputy Minister of Industry and Trade; Ms. Nguyen Thi Phu Ha, Vice Chairman of the State Capital Management Committee. On the side of Vietnam Oil and Gas Group, there were Mr. Tran Sy Thanh - Member of the Party Central Committee, Deputy Head of the Central Economic Committee, Secretary of the Party Committee, Chairman of the Board of Members of Vietnam Oil and Gas Group; Mr. Nguyen Vu Truong Son - General Director of Vietnam Oil and Gas Group; Members of the Board of Directors, Board of Management and Petrovietnam’s Divisions and Subsidiaries representatives.
Witnessing the signing ceremony, there were representatives of the Leadership of the Office of the Government, Party Central Committee, Vietnam Oil and Gas Group, Vietnam Electricity, PetroVietnam Power Corporation (PV Power), Joint Venture of Samsung C&T and PetroVietnam Technical Services Corporation (PTSC).
On the side of PetroVietnam Gas Corporation (PV GAS), there were Mr. Nguyen Sinh Khang, Chairman of the Board of Directors; Mr. Duong Manh Son, General Director; Members of the Board of Directors, Board of Management and leaders of PV GAS’s Divisions and Subsidiaries participating in the signing ceremony.
For the pioneer mission of with the goal of ensuring the gas supply for existing customers and new power plant projects, Vietnam Oil and Gas Group and its member units have been actively implementing a chain of gas-power projects using imported LNG according to the "Master plan on development of gas industry of Vietnam to 2025 with an orientation to 2035 " approved by the Prime Minister.
At the signing ceremony, Mr. Duong Manh Son, General Director of PV GAS said: “In response to the requirements of ensuring national energy security and economic growth, based on reports and proposals of PV GAS, PV Power, PVN and the Ministry of Industry and Trade, the Prime Minister issued Official Document No. 212 / TTg-CN on February 13, 2017, regulating that Nhon Trach 3 & 4 Power Plants use imported LNG from Thi Vai Terminal. The Prime Minister also issued Notice No. 03 / TB-VPCP on January 4, 2019 determining the principles regulating gas prices and output consumption. These are important decisions and directions for PV GAS to implement Thi Vai LNG 1 MMTPA Terminal Project and PV Power to implement Nhon Trach 3 & 4 Power Plant Projects”.
Thi Vai LNG - Nhon Trach Gas Power Project Chain includes Thi Vai LNG 1 MMTPA Terminal Project and Nhon Trach 3 & 4 Power Plants Project, in which Thi Vai LNG 1 MMTPA Terminal Project is invested by PetroVietnam Gas Corporation (PV GAS) with the capacity of 1 million tons of LNG/year in phase 1, expected to be completed by 2022, and the capacity of 3 million tons of LNG/year in phase 2, expected to be completed in 2023. Thi Vai LNG Terminal is capable of receiving LNG tankers of up to 85,000 DWT. The main items of Phase 1 include LNG tank with the capacity of 180,000 m3 and technical instruments designed with the latest versions of Vietnamese standards, Vietnamese regulations and international standards... The total investment of the first phase is about $286 million USD, after completion in 2022, will supply about 1.4 billion m3 of gas to consumers including Nhon Trach 3 & 4 Power Plants as well as industrial customers, which partly offset gas domestic shortage after 2022.
Nhon Trach 3 & 4 Power Plants Project is invested by PetroVietnam Power Corporation (PV Power) with the total capacity of 1500MW (750MW each plant) using LNG from Thi Vai Terminal – the usage of 0.57 million tons / year / plant (DO oil for back up) and the construction area of 34.5 hectares. The total investment is about 1.408 billion USD and the expected progress is completing and putting Nhon Trach 3 Power Plant into operation in Quarter III of 2022 and Nhon Trach 4 Power Plant in Quarter IV of 2023, which will help supplement the power supply for the Southeast region.
In addition to bringing benefits to all participants, more importantly, the appearance of Thi Vai LNG Terminal and Nhon Trach 3 & 4 Power Plants will contribute to ensuring the demand for gas as well as electricity for industrial zones, which is an increasingly urgent issue in the Southeast key economic region. LNG Thi Vai Terminal will be an important link in supplying renewable gas for gas consumers, including Nhon Trach 3 & 4 Power Plants. Together with Son My LNG Terminal, the total capacity is expected to be 10 million tonnes of LNG each year, which basically guarantee energy demand for the Southern region in the future.
The appearance of LNG Thi Vai Terminal and Nhon Trach 3 & 4 Power Plant will contribute to ensuring the demand for gas as well as electricity for the Southeast key economic region. For the first time, there is a LNG power plant in Vietnam and PV GAS is proud to be the first LNG supplier in Vietnam. Designed and constructed with the most advanced technology in the world, by leading experienced contractors in Japan, Korea, United Kingdom, LNG Thi Vai Terminal will become the most modern project in Vietnam in this field, bringing green and environmentally friendly energy.
On behalf of the leaders of Vietnam Oil and Gas Group, Mr Le Manh Hung, Deputy General Director of PVN congratulated PV GAS and its partners who have undergone a successful negotiation phase and successfully signed the contract; and also emphasized that the signing ceremony would mark an important step in the process of implementing Thi Vai LNG - Nhon Trach Gas Power Project Chain, which is a precondition to ensure the success of the project chain.
Emphasizing the important role of the project in ensuring energy security and ensuring the fuel input for electricity production, Mr Le Manh Hung, Deputy General Director of PVN affirmed that the project is always paid special attention by the Party and State leaders, especially in the situation of gas domestic shortage. He believed that with the commitments and efforts of the parties, the project would be implemented effectively and on schedule. He also affirmed that Vietnam Oil and Gas Group committed to continually support PV GAS and PVPower in the process of implementing projects and hoped that the Government leaders, the Ministries/Industries and the State Capital Management Committee would continue to pay attention to and support the project to be implemented on schedule, effectively and safely.
Attending and speaking at the signing ceremony, Mr Dang Hoang An, Deputy Minister of Ministry of Industry and Trade highly appreciated the efforts of the parties who aggressively implement the project-related contents to sign the contract. Deputy Minister Dang Hoang An affirmed that oil and gas projects are always concerned and supported by the Government and Ministry of Industry and Trade.
However, the upcoming task is still challenging, therefore, Government leaders and Ministry of Industry and Trade hope that Vietnam Oil and Gas Group, PV GAS, the EPC contractor and PVPower ... will be proactive and highly-determined, taking advantages of previous experiences, as well as tightly coordinating with the Ministry/Industry and authorities in project management to implement the project with safety, quality assurance and schedule assurance.
On this occasion, Vietnam Oil and Gas Group and the signatory parties would like to thank to the direction and support of the Government, Ministries and local agencies for the current success of the Vietnam Gas Industry. Vietnam Oil and Gas Group wishes to continually receive such valuable attention and support to promote the implementation of projects, contributing to the goal of ensuring energy security, economic growth and social security.
With the witness of the leaders, the signing ceremony took place with the belief that once the project is completed and put into operation, it will contribute to stabilizing the national energy security and supplementing gas and power sources to meet the demand for increasing energy use.