Block B gas power project chain is likely behind progress

The report of the National Steering Committee on Electricity Developmentsaid that currently, the progress of the upstream gas supply project is not synchronized with the downstream projects as thermal power plants in O Mon Power Center.

Specifically, according to the notice of Phu Quoc Petroleum Operating Company (PQPOC), Block B gas will be at the fence of O Mon center by the end of December of 2023, while, according to Decision No. 46 / QD-TTg dated July 19, 2018 of the Prime Minister on approving the plan of developing Block B and 48/95 gas fields and Block 52/97, the first gas flow will be in 2021 and Decision No. 183/QD-TTg, the progress of O Mon 4 generation in the fourth quarter of 2023. This situation leads the Electricity of Vietnam (EVN) to submit to the competent authorities to approve adjusting power generation progress of O Mon 4 project. Therefore, the project has been delayed for 2 years in comparison withthe progress schedule in Decision No. 428/QD-TTg dated March 18, 2016 of the Prime Minister.

Regarding the gas price that was calculated from 2016 with an increase of 2.5%/year as stipulated in Decision No. 46/QD-TTg dated July 19, 2018.

Besides, borrowing the foreign loan for developing gas of Block B and Block B – O Mon gas pipeline has been not approved by the State Capital Management Committee at the Enterprises (SCMCE) so far.

Facing the risk that Block B gas - power projects chain may be continuously behind schedule, Deputy Minister of Industry and Trade (MOIT) Hoang Quoc Vuong (Deputy Head of National Steering Committee on Power Development) asked: 

EVN and PVN to continue negotiating the conditions and clauses for gas off-taking for up-stream investors to develop fields and report the difficulties and obstacles  to the Prime Minister, MOIT and SCMCE for timely direction.

Department of Electricity and Renewable Energy to urgently comment on the O Mon 2 proposal for Can Tho City People's Committee to complete and submit to competent levels to approve investment policy for investor to deploy the project.

O Mon 2 investor (consortium of Vietnam Construction Trading Joint Stock Corporation and Japanese MarubeniCorporation) to actively study the regulations on methods of defining electricity generation prices, sequence of checking PPA, etc. The O Mon 2 investor must estimate   the difficulties of an IPP nongovernment guarantee project  for establish a plan to ensure progress schedule. In case if the progress schedule could not be ensured, the investor  has promptly to report to MOIT and Prime Minister for considering.

The Office of National Steering Committee on Electricity Development to preside and coordinate with Department of Electricity and Renewable Energy and Electricity Regulatory Authority to organize the seminars on implementing the large power projects in the form of Independent Power Project (IPP) implemented by foreign investors. Coordinate and urge the Ministry of Planning and Investment to complete early appraisal and report to the Prime Minister for decision on investment policy of O Mon 3 Thermal Power Project.

VER.