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The framework agreement on gas purchase between PVN and PETRONAS has been signed

The framework agreement on gas purchase between PVN and PETRONAS has been signed - 

At March 15, 2019 afternoon, in Ho Chi Minh city, Vietnam Petroleum Group (PVN) and Malaysia National Petroleum Company (PETRONAS) held the ceremony for signing the framework agreement (HOA) on added gas purchase for Ca Mau area – Vietnam.

The photo of the Signing Ceremony

In 2001, the Government of Vietnam decided to invest in Ca Mau Gas - Power - Fertilizer Industrial Complex project in Khanh An commune, U Minh district, Ca Mau province using natural gas from PM3CAA Lot in Vietnam and Malaysia offshore overlapping area with a demand of 2.2 billion cubic meters per year.

From 2007 up to now, the gas supply to this area includes amount PVN has right to receive and amount from PETRONAS in accordance with the Petroleum Sharing Contract (PSC) of PM3CAA Lot (PSC PM3CAA).

With the close cooperation of PETRONAS in implementing gas purchasing contracts, PVN is always given priority to maximize gas demand during the dry season and supported by PETRONAS to receive excess amount during the rainy season.

Therefore, during the recent years, Ca Mau Complex was safely and stably operated, that not only brings about efficiency for PVN but also has the strategic socio-economic significance for the southwest region.

It is expected that from the end of 2019 or early 2020, when all the compensated gas amount from PETRONAS is over, Vietnamese side will be provided only a gas amount that it has the right to take. So, then Ca Mau Complex will sustain a deficit of more than 1 billion m3 per year.

That is a result why, under the close guidance of the Vietnamese Government, Ministry of Industry and Trade and related ministries, branches, PVN and PETRONAS have agreed to sign HOA on added gas purchase for Ca Mau Complex from amount that PETRONAS has the right to take in accordance with PSC PM3CAA and from other gas sources of Malaysia

Based on the signed HOA on March 15, 2019, the two sides will continue to negotiate gas purchasing contracts, for the basis to implement additional gas amount supply for Ca Mau Complex to be stably and effectively operated, contributing to socio-economic development in Southwest region and ensuring energy security of the country.

VietnamEnergy.vn

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