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Gas sale heads of agreement signed for O Mon II Thermal Power Project

Gas sale heads of agreement signed for O Mon II Thermal Power Project The Vietnam Oil and Gas Group (Petrovietnam) and a joint venture between the Trading Construction Works Organisation (WTO) and Japan’s Marubeni Corporation signed a gas sale heads of agreement for O Mon II Thermal Power Project on February 22.

The main content of this heads of agreement is to unify the principles and main provisions of the Gas Sale Agreement (GSA) and serve as a basis for the parties to accelerate the investment progress of all projects in Block B gas - power project chain.

Petrovietnam General Director Le Manh Hung said that the entire gas source of Block B, nearly 400km off Can Tho city’s coast, will be transported through a pipeline system to the city’s O Mon district to be supplied to the O Mon I, O Mon II, O Mon III and O Mon IV power plants, which have a combined capacity of about 3,810 MW.

During the stable period, Block B will provide power plants with about 5.06 billion cubic metres of gas per year to produce about 21.2 billion kWh of electricity to meet part of the energy demand for Vietnam’s economic development in the coming time.

In particular, the development of the project will contribute significantly to the state budget and socio-economic development for the southwestern localities, as well as ensuring the national electricity generation demand in the period after 2026, added Hung.

Nobuta Tetsuhiro, Counsellor of the Japanese Embassy in Vietnam, affirmed the O Mon II Thermal Power Plant Project, invested by the WTO-Marubeni joint venture, will be an important transitional energy project, contributing to helping Vietnam fulfill its commitment to bring net emissions to zero by 2050, as well as tightening cooperation between Japan and Vietnam.

He went on to say that the Japanese embassy will maintain its support to speed up the progress of the project, which is expected to be put into commercial operation in 2026-2027./.