PetroVietnam Power Corporation (PV Power) and PetroVietnam Gas Joint Stock Corporation (PV GAS) signed co-operation agreements on October 14 to secure gas supplies for power plants in southwestern Vietnam and explore the development of an integrated liquefied natural gas (LNG) project chain in the northern port city of Hai Phong.
The agreements represent a significant step towards integrating the gas-to-power value chain and optimising resources across two key companies within the ecosystem of Vietnam National Industry – Energy Group (PETROVIETNAM).
Attending the signing ceremony on behalf of PETROVIETNAM were Le Manh Cuong, general director; deputy general directors Le Xuan Huyen, Phan Tu Giang, and Vu Dao Minh; representatives of the group’s specialised departments; and executives from its subsidiaries, including PetroVietnam Exploration Production Corporation (PVEP), PetroVietnam Technical Services Corporation (PTSC) and PetroVietnam Power Generation Branch (PVPGB).
PV GAS was represented by Duong Tri Hoi, general director; Nguyen Huy Hoang, a board member; deputy general directors Huynh Quang Hai, Nguyen Cong Luan, and Nguyen Minh Tuan; along with various heads of the corporation’s specialised departments.
PV Power’s delegation included Hoang Van Quang, chairman; Le Nhu Linh, president & CEO; members of the Board of Directors; the executive management team; and heads of specialised departments.
Under the terms of the co-operation agreement covering the southwestern region, PV GAS will arrange and supply natural gas and regasified liquefied natural gas (LNG) to the current Ca Mau 1 and 2 power plants, as well as to power projects that PV Power intends to invest in, including the planned expansion of the Ca Mau 1 and 2 complex.
PV Power will, in turn, purchase and receive the gas required to operate these plants under terms and conditions which will be agreed upon in subsequent contracts.
Nguyen Kien, deputy general director of PV Power, and Nguyen Minh Tuan, deputy general director of PV GAS, sign the co-operation agreement on natural gas and regasified LNG supplies for power plants in the southwestern region.
The two businesses will also co-ordinate efforts to update assessments of gas supply and demand from the existing PM3-CAA field, prospective sources such as Nam Du–U Minh, Khanh My–Dam Doi and Hoa Mai, as well as imported LNG. These findings will serve as a foundation for creating long-term investment and operational strategies for gas infrastructure.
The current Ca Mau 1 and 2 power plants are thereby expected to require between 1.2 billion and 2 billion standard cubic metres (Sm³) of gas annually. Demand is predicted to increase to between 2.5 billion and 4 billion Sm³ per year with the anticipated expansion. The two sides will reach a detailed agreement on the actual offtake volumes, accounting for the availability of additional gas supplies at each stage.
Under the investment research cooperation framework, PV GAS will be in charge of evaluating prospects for the development of LNG supply infrastructure in the southwestern region. Floating storage and regasification units (FSRUs), east–west connecting pipelines, or an LNG import terminal equipped with an integrated transportation and distribution network are among the options being considered. In the meanwhile, PV Power will spearhead studies into the expansion of the Ca Mau 1 and 2 power plants and other prospective projects. The collaboration aligns with PETROVIETNAM’s strategic vision of establishing an eco-industrial energy hub in Ca Mau.
PV Power and PV GAS explore 1,600-MW LNG project in Hai Phong
In addition, PV Power and PV GAS have signed a memorandum of understanding (MoU) to investigate the development of an integrated project chain in Hai Phong, which will include an LNG import terminal and an LNG-fired thermal power plant with an anticipated installed capacity of around 1,600 megawatts (MW). According to the agreement, PV GAS will lead the research and development of the LNG terminal, while PV Power will oversee studies for the power plant.
Nguyen Duy Giang, deputy general director of PV Power, and Huynh Quang Hai, deputy general director of PV GAS, ink the co-operation agreement on studying the development of an integrated LNG terminal and LNG-fired power plant project in Hai Phong.
The two businesses will jointly draft a report to be submitted to PETROVIETNAM, seeking approval in principle to move further with additional research, advance investment promotion and facilitate funding arrangements. Following the group’s guidance, they will continue working with the Hai Phong authorities and relevant regulatory agencies in order to finalise legal procedures, update or supplement development plans, and fulfill all of the necessary investment formalities.
The partnership brings together PV GAS’s strengths in infrastructure development and gas supply security with PV Power’s expertise in power plant investment and operations. Co-ordinating efforts from the research stage will enable the two businesses to align fuel availability, projected demand and construction schedules, laying the groundwork for more efficient capital deployment, better utilisation of existing infrastructure and the development of additional generation capacity.
The agreements further translate PETROVIETNAM’s value-chain strategy into concrete action, with member companies leveraging their respective core capabilities to support one another and pursue shared growth. It is anticipated that closer integration between the two key players in the gas-to-power value chain will help to create fresh growth momentum, reinforce their contribution to national energy security, and advance PETROVIETNAM’s ambition to rank among the world’s 500 largest companies by 2030.
