London, June 4, 2024 (The Energy Circle) - Vietnam’s significant gas-to-power project, led by the Vietnam Oil and Gas Group (Petrovietnam), has made considerable progress with a nearly $12 billion investment. Following a final investment decision (FID), Petrovietnam has signed several commercial agreements with its partners, advancing the ambitious Block B–O Mon gas-to-power project.

The project involves a gas field offshore Southwest Vietnam, connected by a pipeline to the O Mon power plant complex, situated 400 kilometers away. Key partners in this venture include Mitsui Oil Exploration (MOECO), PetroVietnam Exploration Production Corporation (PVEP), PetroVietnam Gas (PV Gas), and Thailand’s PTT Exploration and Production Public Company (PTTEP).

The gas field, located in the Malay–Tho Chu basin, is expected to commence production by the end of 2026, with an estimated output of 490 million cubic feet per day. The pipeline will transport gas to the O Mon power plants, which have a total capacity of approximately 3,180 MW, as well as to the Ca Mau area. Once operational, the Block B field is projected to produce about 5.06 billion cubic meters of gas annually, generating nearly 22 billion kWh of electricity.

MOECO is set to invest $560 million in the upstream business and $180 million in the midstream segment. This project aligns with Vietnam's larger energy security strategy, complementing existing liquefied natural gas (LNG) developments, such as the Cai Mep LNG terminal, which is nearing commercial operation.