Gazprom and PetroVietnam Discuss NGV Development

| Vietnam, Danang

Heads of Gazprom and PetroVietnam meet while at the Asia-Pacific Economic Cooperation summit in Danang, Vietnam to discuss a wide range of issues related to bilateral partnership, including hydrocarbon production and geological exploration in Vietnam. Also included in the discussion was Vietnam’s goal to expand the presence of natural gas vehicles.

The meeting took place between Alexey Miller, Chairman of the Gazprom Management Committee, and Nguyen Vu Truong Son, CEO and Chairman of the Board of Directors of Vietnam Oil and Gas Group (PetroVietnam).

Particular attention was paid to cooperation in the NGV market. The meeting placed a focus on the construction project for a small-scale LNG production complex and a CNG filling station network in southern Vietnam. A feasibility study for the project is underway. It was noted that the project would contribute to the proliferation of vehicles powered by natural gas – a modern and environmentally-friendly fuel.

“Vietnam is one of Gazprom’s key partners in Southeast Asia. Together with PetroVietnam, we successfully conduct geological exploration and produce hydrocarbons, as well as make preparations to develop the country’s NGV market.

Market Expansion

Vietgazprom, a joint operating company established by Gazprom and PetroVietnam on a parity basis, is engaged in exploration in licensed blocks Nos. 112 and 129–132 located on the continental shelf of Vietnam.

Since 2013, Gazprom International and PetroVietnam have been engaged in commercial gas and condensate production from the Moc Tinh and Hai Thach fields offshore Vietnam.

In 2015, PVGAZPROM Natural Gas for Vehicles, a joint Russian-Vietnamese company focused on the use of natural gas as a vehicle fuel, was registered. The joint venture consists of Gazprom International (35.5 per cent), Gazprom Gazomotornoye Toplivo (35.5 per cent), and PETROVIETNAM GAS (29 per cent).

In 2016, Gazprom and PetroVietnam signed a Memorandum of Understanding on the development of new oil and gas projects, a Memorandum of Understanding on power generation, and the Addendum to extend the Cooperation Agreement on personnel training.

Source: Gazprom

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