ExxonMobil will lead a project to develop integrated natural gas-for-power in Vietnam, the American energy giant announced in a statement on Wednesday.
The company said it has joined forces with PetroVietnam and PetroVietnam Exploration Production Corporation to plan a multi-billion dollar integrated gas-for-power development in central Vietnam.
The proposed project consists of an offshore platform, a pipeline to transport natural gas to shore, an onshore gas treatment plant, and pipelines that feed natural gas to third-party power plants to generate electricity locally, according to the statement.
ExxonMobil said it has awarded the contract for engineering and design of the project, and it is filing appropriate permits, planning applications and other preparatory work for the proposed development.
If approved, ExxonMobil will lead the construction and operation of the project, which will produce natural gas from the Ca Voi Xanh field that is located in offshore central Vietnam in the South China Sea.
"The Ca Voi Xanh project could bring a number of long-term benefits to the country, including cleaner, reliable power to help drive economic growth and improved living standards," Liam Mallon, president of ExxonMobil Development company, said in a statement.
"If the project goes forward, it is estimated to generate $20 billion in revenue to the Vietnamese government, thousands of local jobs and improved energy security from domestic gas development," he added.
A final investment decision (FID) for the project will be made in 2020. The FID depends on regulatory approvals, government guarantees, executed gas sales agreements and economic competitiveness, ExxonMobil said.
By Ovunc Kutlu