On October 30 in Hanoi, witnessed by Prime Minister Pham Minh Chinh, the Vietnam National Oil and Gas Group (Petrovietnam) and its partners signed related contracts and launched the gas-electric project chain Lot B - O Mon, marking an important milestone of this key project chain.
The signing ceremony was attended by Comrade Pham Minh Chinh, Member of the Politburo, Prime Minister; leaders of central ministries and sectors, leaders of localities where project implementation activities are taking place, diplomatic agencies, domestic and international partners of Petrovietnam in the project chain.
Petrovietnam's side has Chairman of the Board of Directors Hoang Quoc Vuong; Director General Le Manh Hung; along with comrades in the Party Committee's Standing Committee, Board of Directors, General Directors Board, leaders of specialized committees/Headquarters of the Corporation; leaders of the member units of the Corporation.
In his report at the ceremony, Petrovietnam's General Director Le Manh Hung stated that the gas and power project chain Lot B - O Mon is a domestic gas and power project chain including: Lot B field development project (upper source), Lot B - O Mon pipeline project (middle source) and 4 gas power plants O Mon I, II, III, IV in the lower source, with an investment scale of nearly 12 billion USD. The expected gas extraction output is about 5.06 billion m3 per year, supplying the 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 in a very large revenue source for the State with over $30 billion, the investors contribute more than $11 billion and also help to strengthen national security, defense, affirm sovereignty over sea and islands. At the same time, the component projects in the project chain during construction process will create additional infrastructure, generate thousands of jobs, and promote economic restructuring in many localities.
In the context of the increasingly strong economic growth, traditional power sources are limited, so gas thermal power projects are important factors in ensuring national energy security. Along with that, the implementation of the gas power project chain Block B - O Mon will be a significant step for Petrovietnam in contributing to the fulfillment of the Vietnamese government's commitments at COP26 with the goal of reducing carbon emissions to address climate change. The VIII Power Development Plan is being developed towards a greener and cleaner energy system, in line with the global trend of the ongoing energy transition.
In the past time, for many objective reasons in investment procedures of low-source power plant projects, as well as existing issues in the policy mechanism regarding electricity consumption, the operation of the electricity market for end consumers to be able to sign commercial contracts leading to many important milestones of the chain being delayed compared to the initial plan.
However, with the resolute direction of the Government, the Prime Minister, along with the determination of Petrovietnam and all parties in the Project Chain, many issues have been gradually resolved with the motto: "Harmonious interests, shared risks". In June 2023, upon realizing the difficulties at the OM III&IV Project, the Prime Minister decided to officially appoint Petrovietnam as the investor to continue the implementation of these two projects. This marked an important milestone as Petrovietnam invested in the entire Project Chain from the upper source to the lower source.
General Director of Petrovietnam Le Manh Hung affirmed that, with the determination, leadership, and strong direction of the Party, Government, and directly the Prime Minister, as well as the support and assistance of central and local ministries, together with the cooperation and sharing of partners, with the tradition of not being afraid of difficulties, of the Oil and Gas people, the Project Chain will successively achieve important milestones, steadily progressing towards the goal.
Speaking at the ceremony, Prime Minister Pham Minh Chinh emphasized that this is an important event, the significance of the petroleum industry is being cared for by all levels, sectors, localities, and people where the project passes. On behalf of the Government, the Prime Minister warmly congratulated Petrovietnam and all participating partners in investing in the signing and implementation of the Lot B - O Mon Gas-Power Project Series. Following the Government's strong direction, Petrovietnam has made efforts to have another important project jointly implemented among the three countries of Vietnam, Japan, and Thailand in the context of many difficulties and challenges to contribute to ensuring national energy security, efficient exploitation, combating negativity, and waste in this project. The Party and State's policy of investing in the O Mon Thermal Power Center is entirely correct, contributing to solving energy issues, agricultural development, creating employment, promoting industrialization, modernization of the Mekong Delta. There is still a lot of work ahead of us, but first and foremost, we need to learn from experience to lead, direct, and implement better to avoid project delays.
In the energy development strategy by 2025, vision by 2050, the Party and the State pay great attention to sustainable development of the Oil and Gas industry. The Government of Vietnam has, is, and will create favorable conditions, support, and encourage activities of Petrovietnam and investors at home and abroad, corporations, companies in the service sector on the basis of ensuring the legitimate interests of all parties; ensure the legitimate rights and interests of investors. This is the consensus view of the Party, the State, the ministries, and sectors.
The Party and the State desire Petrovietnam, investors in the project chain, along with localities to cooperate, support each other, promote regional linkages to drive the development of the economy in the Southwest. For the project chain to succeed, we still have a long and challenging road ahead, with a very large workload. The Prime Minister sincerely hopes that ministries, sectors, and relevant authorities always pay attention, create favorable conditions, and decisively resolve existing difficulties to support the project chain in general and Petrovietnam, EVN along with investors in the chain in particular, to successfully complete the assigned tasks. The Prime Minister is confident that the progress of the upcoming phases will be timely and effective because this is a national key project with significant economic, national security and social importance. Therefore, if we have made an effort, we must make even more effort, if we are determined, we must be even more determined. Every issue can be resolved with the spirit that where the issue arises, there it can be resolved.
The Prime Minister hopes and believes that with Petrovietnam's tradition of unity, proactiveness, creativity, determination, resilience, and hardship, together with the trust and long-term cooperation with reliable partners such as Japan and Thailand, the Project Chain will be implemented according to plan, and must exceed the plan, achieve successes as expected to promote the development of Vietnam's petroleum industry, collectively continue to actively contribute to the industrialization and modernization of the country, and to the comprehensive, rapid and sustainable development of the Mekong Delta region, contributing to strengthening and enhancing cooperation with Japan and Thailand.
At the ceremony, Petrovietnam and its partners signed important documents: the Framework Agreement for Block B; the agreed Minutes of the Content of Sale Contract Ô Môn I Gas; awarding the EPC #1 Contract. This event sets the stage for Petrovietnam and its partners to continue implementing the component projects in the near future.
With a mission to ensure "energy for development" and the rich experience accumulated when successfully implementing key gas-electricity project chains like Ba Ria - Vung Tau - Dong Nai, Ca Mau, Thai Binh..., Petrovietnam is confident with the support and assistance from the Party, State, Government, Prime Minister, Ministries, sectors; the close coordination of partners; unity, determination of "One team - One goal" spirit, and the unwavering spirit of Petrovietnam, the entire gas-electricity project chain Lot B - O Mon will be systematically implemented and completed in the soonest time, meeting the energy needs for the socio-economic development of the country, as well as bringing benefits to participants.
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