VietNamNet Bridge – The project of a $20 billion gas & electricity complex in Quang Ngai province to be developed by Exxon Mobil is believed to have high feasibility thanks to the good reputation of the investor and the readiness of the local authorities.

What does Exxon Mobil want?

The US giant in the oil & gas sector is moving ahead with its plan to build a gas & electricity complex worth $20 billion in Vietnam. The group is expected to submit the documents relating to the project (the assessments about gas reserves, the location and implementation plan…) to the Ministry of Industry and Trade and PetroVietnam for approval next month.

Sources said that Exxon Mobil and PetroVietnam want a land plot covering an area of 200 hectares. In the first phase, a 1,500MW power plant would be developed on an area of 100 hectares. Later, more works would be set up to serve the power plant with the capacity of 4,000-5,000 MW and the gas plant.

Meanwhile, PetroVietnam now moves ahead with its plan to bring gas from the blocks No. 117, 118 and 119 to Quang Ngai, where it would develop a gas & power complex in the central region.

The four locations Quang Ngai provincial authorities have suggested to the investors are some 75-85 kilometers far from the blocks, which would be very convenient for them to implement the projects.

However, the sources said that the investors have paid highest attention to the location in the northeast of the Dung Quat Oil Refinery.

Meanwhile, a source from the Ministry of Industry and Trade said that in fact, the cooperation between the US Exxon Mobil and PetroVietnam was kicked off sometime ago.

The official said the suggested location is the Ca Voi Xanh oil field. A frame agreement on the implementation of the project on Ca Voi Xanh oil field development was signed by the two parties during the Vietnamese President Truong Tan Sang’s visit to the US in July 2013.

How high the feasibility of the mammoth project?

A senior official of the Dung Quat Economic Zone said both Exxon Mobil and PetroVietnam have shown their strong determination to develop the project by conducting the field work to seek a suitable place for the oil & power complex.

Cao Khoa, Chair of the Quang Ngai provincial people’s committee has affirmed that Quang Ngai has the things the two investors look for, while Quang Ngai authorities are willing to create most favorable conditions for them to develop the project in the locality.

Also according to Khoa, the investors want some 300 hectares of land, and the local authorities can satisfy them.

“In general, all the requirements set by the investors in land, port, transport conditions, electricity and water, would be satisfied,” Khoa said.

“I can say that the investors and us have reached agreements in nearly all matters to develop the project,” he added.

Commenting about the project, an economist said that the $20 billion project would not be a “picture cake” like the ones local newspapers reported about recently.

Exxon Mobil is a big oil and gas group which puts out 6.5 million barrels of crude oil a day. With its powerful financial capability, joining forces with PetroVietnam to develop the gas and power complex is within its reach.

Tien Phong