Quang Ngai pins hopes on ExxonMobil’s power project

Quang Ngai pins hopes on ExxonMobil’s power project - 

The central province of Quang Ngai is looking forward to the development of a multi-billion dollar gas-to-power complex, developed by the US energy giant ExxonMobil Corp.

Photo source AFP

Quang Ngai People’s Committee last week sent official documents to related ministries to commit its support as well as viable locations for the gas-to-power complex, which will have a capacity of 1,500 MW and cover a total area of 200 hectares in the first phase of the project.

“Quang Ngai is committed to maximum site clearance and resettlement, the application of the most preferential land rental rates, as well as the development of infrastructure to meet the plant and ancillary works,” stated the document.

The three locations Quang Ngai provincial authorities have suggested to the investors for construction are some 85 kilometres from offshore gas blocks, which would be convenient for them during the implementation of the project.

Quang Ngai People’s Committee Chairman Tran Ngoc Cang affirmed that the authorities are willing to create the most favourable conditions for the project. “In general, all the requirements set by the investors in land, port, transport conditions, electricity and water would be satisfied,” he said.

The exact amount of investment capital has not been released, but initial information suggested that the gas-to-power complex could carry a price tag of $20 billion. However, state-run PetroVietnam referred to a figure of $10 billion.

ExxonMobil and PetroVietnam signed a memorandum of understanding for the project in 2013. The project is believed to have high feasibility thanks to the good reputation of the investor and the readiness of the local authorities.

On a related note, Quang Ngai Province People’s Committee asked ministries for approval in shutting down the $3 billion Guang Lian Dung Quat steel project after inspections were carried out due to long delays besetting the project.

The committee said that all conditions necessary to ending the project’s operations had been met. It also said the order to cease should come into effect this month.

One of the most important conclusions in respect to the project’s scope is that as of June 2016 “sufficient conditions are in place for the state to reclaim all of the project’s leased land without any compensation in terms of land and assets on site, except for force majeure events.”

At present, Guang Lian has not agreed to the proposal and has officially refuted the conclusions of the public inspection.

Source: VIR

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