Petrovietnam and foreign partners to establish US$1.27 billion gas pipeline

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Petrovietnam and foreign partners to establish US$1.27 billion gas pipeline

PetroVietnam, a subsidiary of the State-owned oil and gas group, and its foreign partners have secured a license to invest in a natural gas pipeline in the south of Vietnam, making it the largest foreign investment project approved this year.

The Block B – O Mon pipeline in the Mekong Delta’s Kien Giang province was granted with license on Apr. 20 to a joint venture between the PetroVietnam Gas (PV Gas), Vietnam’s largest listed energy firm, and a Japanese investor, according to a monthly report of Foreign Investment Agency (FIA) at the Ministry of Planning and Investment.

However, the report didn’t name the investor.

PetroVietnam has identified the foreign partner as Japan’s Mitsui Oil Exploration Co. but also said that Thailand’s PTT Exploration and Production (PTTEP) would be a partner in the project.

The registered capital for the pipeline is $1.27 billion, according to FIA, making it the biggest new investment in Vietnam to receive government approval this year, while Samsung’s injection of $2.5 billion into its Samsung Display Vietnam plant in March is the largest additional funding to an existing FDI project.

Vietnam received $15.8 billion in foreign direct investment inflows last year.

The gas pipeline is expected to deliver 20.3 million cubic meter of natural gas per day to power plants in the two locations, with a total capacity of 3,660 MW.

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