Written by: Fatima Younis
Vietnam Gas Corporation (PV GAS) and Petrovietnam Power Corporation (PV Power) have signed new cooperation agreements aimed at enhancing integration in the gas and electricity value chain, in line with national strategic orientations for Vietnam's energy sector. This alliance comes within the framework of maximizing the utilization of available resources by both parties and developing the necessary infrastructure to support the power generation sector relying on natural gas and liquefied natural gas (LNG).
Development of Energy Supplies in the Southwestern Region
The concluded agreement includes enhancing cooperation in the supply of natural gas and regasified liquefied natural gas to existing power plants in the southwestern region, specifically the "Ca Mau 1 and 2" plants. The two companies plan to develop infrastructure to support expansion in these plants, as estimates indicate an increase in annual gas demand for these projects from levels ranging between 1.2 and 2 billion cubic meters, reaching between 2.5 and 4 billion cubic meters in the future, based on the availability of gas sources and future expansion plans. Both sides will work on joint coordination to ensure stable supplies from current fields and new sources, in addition to imported LNG quantities to ensure operational efficiency.
Expansion in LNG Projects in Hai Phong City
In a related context, the two companies signed a memorandum of understanding aimed at conducting studies and developing LNG supply chain projects and thermal power plants in Hai Phong City. The production capacity of the targeted power plants in this project is expected to reach approximately 1,600 megawatts. PV GAS will lead research and investment activities in the infrastructure for LNG receiving and storage terminals, while PV Power focuses on feasibility studies and the development of related power generation plants. Hai Phong City is a strategic location thanks to its developed maritime infrastructure, enhancing its ability to become a regional hub for importing and distributing LNG, to support the growing energy needs in northern Vietnam and ensure national energy security in accordance with approved development plans until 2035.
