Block B project: Join the electricity market, have the first gas flow by the end of 2026?

TTO – The Ministry of Industry and Trade has just reported to the Government Office on solving problems of the block B gas-power project chain, at the request of the Vietnam Oil and Gas Group (PVN) and the Electricity of Vietnam (EVN). EVN)..

The ministry said that it has issued guidance documents on how O Mon power plants will use Block B gas to indirectly participate in the electricity market, according to the provisions of Circular 45/2018.

Request PVN, EVN to carry out some work related to Block B gas project; make a plan to convert fuel from O Mon power plant from running oil to using block B gas, in line with the gas supply schedule of the gas project… in submission to the competent authorities for consideration and decision.

Request PVN to consider and agree with upstream investors (MOECO, PTTEP, PVEP) to have the final investment decision (FID) no later than June 2023 and the time when the block B gas field development project is available. the first gas flow at the latest in the fourth quarter of 2026; report to state management agencies, notify midstream and downstream partners.

PVN approved and issued bidding documents for the design, construction and installation of the central technology platform cluster and the housing platform of the gas development project block B, signed the contract in June 2023. At the same time, complete the negotiation and signing of gas purchase and sale agreements (GSPA), gas sale agreement (GSA) and power purchase agreement (PPA) no later than the first quarter of 2023.

PVN is also required to work with midstream investors (PVGas, PTTEP, MOECO) to urgently complete a report to the Ministry of Planning and Investment to adjust the investment registration certificate of the gas pipeline project. Lot B – O Mon, ensuring synchronization of upstream and downstream projects of gas and electricity in Block B.

For EVN, the Ministry of Industry and Trade requires early approval and issuance of the bidding documents for the EPC package of the O Mon 4 thermal power plant project in the fourth quarter of 2022. Directing Power Generation Corporation 2 (Genco2) to implement an investment project to convert FO fuel to using Block B gas for O Mon 1 Power Plant in sync with the gas supply schedule.

This group is also required to complete the procedures for appraising the O Mon 3 Power Plant proposal using ODA loans, and submit it to the Committee for State Capital Management at Enterprises for approval of the feasibility study report of the power plant project. O Mon 3 in December.

The Ministry of Industry and Trade believes that the problems of the gas-electricity project chain in Block B have been solved. Also, the responsibility to promote the project progress belongs to the investors of the upstream, midstream and downstream projects.

Regarding gas mobilization for power generation this year, according to the electricity supply and power system operation plan in 2022, the amount of gas consumed for power production is 5.417 billion m3. In which, the Southeast region is 4.237 billion m3; Southwest region 1.18 billion m3.

The Ministry of Industry and Trade said that it is expected that the actual amount of gas consumed for power production this year is 5.57 billion m3, exceeding the plan.

In which, gas in the Southeast region exceeded 8% of the plan, reaching 4.8 billion m3, but the Southwest region was only 65% of the plan, with 0.77 billion m3 due to Ca power plants. Mau and the wellhead rig had problems and had to be repaired for a long time.

Planning to mobilize gas for power generation in the coming years, the Ministry of Industry and Trade affirmed that it will ensure stable, adequate and timely supply for gas power plants. The management and administration of gas and gas prices are also carried out according to the market mechanism, ensuring the principles of competition, transparency and equality.

Request PVN, PVGas to coordinate with EVN and investors of gas-using power plants to review all gas purchase and sale contracts (GSPA), gas sale contracts (GSA) and power purchase agreements (PPA) to amend, supplement, ensure synchronization, throughout from upstream to downstream and of the whole chain of gas – electricity projects.


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