PetroVietnam, K-Sure to help Korean participation in Vietnam gas projects

PetroVietnam has signed a memorandum of understanding (MoU) with state-backed credit agency Korea Commercial Insurance Organisation (K-Sure) to support Korean companies in participating in Vietnam's natural gas projects, K-Sure announced on June 21.

Under the MoU, the parties will work to expand opportunities for Korean companies to engage in projects promoted by PetroVietnam. K-Sure will provide up to $1bn in mid- to long-term financing if a Korean company secures a project contract with PetroVietnam.

PetroVietnam is planning natural gas projects worth $12bn, which will proceed in three stages: gas field development, pipeline construction, and gas-fired power plant building, K-Sure said.

Last year, Vietnam commissioned its first LNG import terminal, the Thi Vai LNG import terminal, by PetroVietnam Gas. With an initial handling capacity of 1mn tonnes/year, the terminal features a 180,000 m³ storage LNG tank, a jetty, and a regasification area. In its second phase, the terminal's capacity will be expanded to 3mn tonnes/year.

PetroVietnam Gas, a subsidiary of PetroVietnam, plans to supply regasified LNG through pipelines and transport LNG via trucks to downstream customers. The Thi Vai LNG import terminal is expected to play a significant role in addressing Vietnam's gas shortage by augmenting gas supply to consumers, including the Nhon Trach 3 and 4 power plants, as well as industrial customers.