The Conclusion of the MoIT on deploying the Block B – O Mon gas-electricity project chain

On November 18, 2022, at MOIT, the Deputy Minister Dang Hoang An chaired a meeting on deploying the Block B – O Mon gas-electricity project chain.

In the meeting were leaders of PetroVietnam (PVN), Electricity of Vietnam (EVN), Departments of Petroleum and Coal, Electricity and Renewable Energy and Electricity Regulatory Authority under MOIT.

After listening to the reports of PVN and EVN on deploying the component projects in the Block B gas-electricity project chain and the proposals and recommendations of the units participating in the meeting, Deputy Minister Dang Hoang An made the following conclusions:

Firstly, requirement from PVN to consider and agree with upstream investors (MOECO, PTTEP, PVEP) for implementing the following tasks:

1/ Having the Final Investment Decision (FID) no later than June 2023 and the time moment that the Block B gas has the first gas flow at the latest in the fourth quarter of 2026, for reporting the State management authorities , and notifying the midstream and downstream partners right in November 2022.

2/ Approving and issuing bidding documents for designing, constructing and installing the Central Technological group and Housing Platform (EPCI#1) of the Block B gas project (rightly in November, 2022) and signed EPC Contract#1 (in June 2023).

3/ Approving and issuing bidding documents for the field inside pipelines (EPCI#2) of Block B gas project (no later than December 2022), signing EPC&2 contract (no later than in June 2023).

4/ Completing the negotiations and signs of gas purchase agreements (GSPA), gas sale agreement (GSA) and power purchase agreement (PPA) no later than the first quarter of 2023.

Secondly: PVN and midstream investors (PV Gas, PTTEP, MOECO) expeditiously complete the documents for reporting to the Ministry of Planning and Investment to adjust the investment registration certificate for the Block B - O Mon gas pipeline project for ensuring synchronous progress of upstream and downstream projects.

Thirdly: EVN should soon approve and issue the bidding documents for the EPC bidding package of the O Mon 4 power plant project (in the fourth quarter of 2022).

Fourthly: EVN should direct the Power Generation Corporation 2 (GENCO2) to deploy the transition investment project from FO to Block B gas fuel for O Mon 1 Power Plant in synchronous phase with the gas supply schedule.

Fifthly: EVN should continue to work with competent authorities to complete the following tasks:

1/ With the Ministry of Planning and Investment to complete the appraisal procedure for the O Mon 3 Power Plant project with using ODA loans from the Japanese Government (in November 2022) to submit to the Prime Minister for consideration and approval .

2/ Submitting to the Committee for Managing the State Capital at Enterprises for approving the O Mon 3 Power Project Feasibility Study Report (FS) in December 2022.