Written by: Salma El-Saqqa
Vietnam Gas Corporation (PV GAS) and PetroVietnam Power Corporation (PV Power), subsidiaries of the PetroVietnam Group, have signed strategic cooperation agreements aimed at strengthening the integrated gas-to-power value chain. This move comes within the framework of national directives to enhance the efficiency of national resources and develop energy infrastructure in various Vietnamese regions, contributing to ensuring national energy security and supporting socio-economic development.
Enhancing energy supplies in the Southwestern region
Under the signed agreements, PV GAS will secure and supply natural gas and Liquefied Natural Gas (LNG) to existing and future power plants in the southwest region of Vietnam. This cooperation mainly includes the Ca Mau 1 and Ca Mau 2 power plants, in addition to the expansion projects that PV Power plans to implement in the region. This partnership is expected to meet the growing demand for fuel for electricity generation, as the needs of the Ca Mau plants are estimated at billions of cubic meters annually, with the possibility of this demand increasing with the completion of new expansion projects.
LNG projects in Hai Phong
Furthermore, the two companies signed a memorandum of understanding to develop a series of LNG projects in Hai Phong city, including the construction of a terminal for receiving, storing, and regasifying LNG, in addition to a thermal power plant with an estimated capacity of up to 1,600 megawatts. This project aligns with Vietnam's Power Development Plan VIII, which aims to increase reliance on LNG to support the electrical grid in the northern regions. PV GAS will lead the infrastructure development works for the terminal, while PV Power will oversee aspects related to the development of the power plant and its operational processes.
Strategic integration and future aspirations
PetroVietnam leadership emphasized the importance of this cooperation in integrating the capabilities of the two companies, as PV GAS seeks to strengthen its role as a central fuel provider, while PV Power benefits from its expertise in operating energy projects and expanding investments. Both parties aim to coordinate continuously to overcome technical and logistical challenges and ensure the effective operation of the gas-to-power value chain. This step is part of a broader vision to transform the Ca Mau region into an industrial hub for eco-friendly energy, reflecting the commitment to energy transition and investment in sustainable energy technologies to ensure a stable and effective energy future for the country.
