On October 30 in Hanoi, in the presence of Prime Minister Pham Minh Chinh, Vietnam National Oil and Gas Group (Petrovietnam) and partners signed related contracts and implemented the Block B - O Mon gas power project chain, marking an important step forward in this key project chain.
Attending the signing ceremony were comrade Pham Minh Chinh, Politburo member, Prime Minister; leaders of ministries, central branches, leaders of localities where the project is deployed, diplomatic agencies, domestic and foreign partners of Petrovietnam in the project chain.
On Petrovietnam's side were Chairman of the Board of Directors Hoang Quoc Vuong; General Director Le Manh Hung; along with comrades in the Party Standing Committee, Member Council, Board of General Directors, leaders of professional departments/Group Office; leaders of member units of the Group.
Reporting at the ceremony, Petrovietnam General Director Le Manh Hung said that the Block B - O Mon gas power project chain is a domestic gas power project chain including: Block B field development project (upstream), Block B - O Mon pipeline project (midstream) and 4 O Mon gas power plants I, II, III, IV downstream, with an investment scale of nearly 12 billion USD. The expected gas exploitation output is about 5.06 billion m3 of gas/year, supplying a complex of 04 power plants at O Mon Power Center with a total expected installed capacity of up to 3,800 MW.
This is a key project of the State, not only bringing huge revenue to the State with over 30 billion USD, investing Parties more than 11 billion USD, but also contributing to strengthening security, national defense, and affirming sovereignty over the sea and islands. At the same time, component projects in the project chain during the construction process will create additional infrastructure, create thousands of jobs, and create economic restructuring of many localities.
In the context of an increasingly strong economic growth and limited traditional power sources, gas thermal power projects are an important factor to ensure national energy security. Along with that, the implementation of the Block B - O Mon gas power project chain will be an important step for Petrovietnam in contributing to implementing the Vietnamese Government's commitment at COP26 with the goal of reducing carbon emissions to cope with climate change. Power Plan VIII is built towards a "greener", "cleaner" energy system, in line with the strong global trend of energy transition.
In recent times, due to many objective reasons in investment procedures for downstream power plant projects, as well as remaining problems in policy mechanisms on electricity gas consumption and electricity market operation so that consumers can sign commercial contracts, many important progress milestones of the chain have been delayed compared to the original plan.
However, with the drastic direction of the Government, the Prime Minister, and the determination of Petrovietnam and all Parties in the Project Chain, many problems have been gradually resolved with the motto: "Harmonized benefits, shared risks". In June 2023, realizing the difficulties at the O Mon III&IV Power Plant project, the Prime Minister decided to let Petrovietnam officially be the investor to continue implementing these two projects. This marked an important milestone when Petrovietnam participated in investing in the entire project chain from upstream to downstream.
General Director of Petrovietnam Le Manh Hung affirmed that, with the determination, leadership and drastic direction of the Party, the Government and directly the Prime Minister, as well as the support and support of Ministries, Central branches and localities, along with the cooperation and sharing of partners, with the tradition of not being afraid of difficulties and suffering of Oil and Gas people, the Project Chain will achieve important milestones one after another, steadily moving towards the finish line.
Speaking at the ceremony, Prime Minister Pham Minh Chinh emphasized that this is an important and meaningful event for the Oil and Gas industry that has received the attention of all levels, sectors, localities and people where the project passes. On behalf of the Government, the Prime Minister warmly congratulated Petrovietnam and all investment partners in the signing and implementation ceremony of Block B - O Mon gas power project chain. Following the drastic direction of the Government, Petrovietnam has made efforts to have more important projects implemented in cooperation between the three countries of Vietnam, Japan and Thailand in the context of many difficulties and challenges to contribute to ensuring national energy security, effective exploitation, and preventing negativity and waste in this project. The Party and State's policy of investing in O Mon Thermal Power Center is completely correct, contributing to solving energy problems, developing agriculture, creating jobs, promoting industrialization and modernization of the Mekong Delta. In the immediate future, we still have a lot of work to do, but first we need to learn from experience to lead, direct, and deploy better so as not to prolong the project.
In the energy development strategy to 2025, with a vision to 2050, the Party and State place great emphasis on the sustainable development of the oil and gas industry. The Vietnamese Government has facilitated, supported and encouraged, and will continue to facilitate, support and encourage, the activities of Petrovietnam, domestic and international investors, and corporations and companies in the service sector, while balancing the legitimate interests of all parties and protecting investors’ lawful rights and interests. This is the consistent position of the Party, State, ministries and relevant authorities.
The Party and State hope that Petrovietnam, investors in the Project Chain and localities will cooperate and support each other, promoting regional connectivity to promote the development of the Southwestern economic region. For the Project Chain to be successful, we still have a long and difficult road ahead. With a huge amount of work, the Prime Minister hopes that relevant ministries, branches and authorities will always pay attention, create favorable conditions, and completely resolve existing difficulties to support the Project Chain in general and Petrovietnam, EVN and investors in the Chain in particular, to successfully complete assigned tasks. The Prime Minister is confident that the progress of the coming stages will be more timely and effective because this is a key national project with many economic, national security and defense implications, and people's livelihoods. Therefore, if you have tried, you must try harder, be determined, then be more determined. All problems can be resolved in the spirit of solving problems where they are.
The Prime Minister hopes and believes that with Petrovietnam's tradition of solidarity, initiative, creativity, determination, and not being afraid of difficulties and hardships, along with the trust and long-term cooperation with trusted partners such as Japan and Thailand, the Project Chain will be implemented according to plan, and must exceed the plan, achieving expected successes to promote the development of Vietnam's Oil and Gas industry, together continuing to make positive contributions to the cause of industrialization and modernization of the country. water and comprehensive, rapid and sustainable development of the Mekong Delta region, contributing to consolidating and strengthening cooperative relations with Japan and Thailand.
At the ceremony, Petrovietnam and its partners signed important documents: Block B Framework Agreement; Minutes of agreement on the content of the O Mon I Gas Sales Contract; Award of EPC Contract#1. This is an event that creates a premise for Petrovietnam and its partners to continue implementing component projects in the near future.
With the mission of contributing to ensuring "energy for development", along with extensive experience accumulated when successfully implementing key gas - electricity project chains: Ba Ria - Vung Tau - Dong Nai, Ca Mau, Thai Binh... Petrovietnam is confident with the support and support of the Party, State, Government, Prime Minister, Ministries and branches; unity and close coordination of partners; With the solidarity, determination of "One team - One goal", the spirit of not being afraid of hardships of Vietnam National Oil and Gas Group, the entire block B - O Mon gas power project chain will be deployed synchronously and completed in the shortest time, meeting the energy source for the country's socio-economic development, as well as bringing benefits to the participating Parties.