HCMC – PetroVietnam (PVN) and a consortium comprising Trading Construction Works Organization (WTO) and Marubeni Corporation signed a gas sale heads of agreement for the O Mon II Thermal Power Plant this morning, February 22, in Hanoi.
As per the heads of agreement, which is normally a non-binding document on the key terms of a proposed agreement, O Mon II will receive gas from the upstream Block B gas project in accordance with the gas project’s development progress.
This signing ceremony is an important step for the three parties to continue their work and ensure the progress of the Block B gas-electricity project chain. It aims to unify the terms and conditions of the gas sale agreement and help promote the investment progress of the Block B gas-electricity project.
The gas sale contract for O Mon II will be completed in 2023, according to Le Manh Hung, general director of PVN.
The power plant has a designed capacity of 1,050MW and is expected to consume about 1.35 billion cubic meters of gas yearly.
The plant will be officially put into commercial operation in the 2026-2027 period. Once completed, it will produce an average of 6.3 kWh of electricity per year and help enhance the power supply capacity of the national power system.
The Block B gas-electricity project chain is located off the southwestern coast of Vietnam, belonging to the Malay – Tho Chu basin. It is about 300 kilometers from the coast of Ca Mau and 400 kilometers from O Mon Power Complex.
It will transport the gas source by pipeline to the area of O Mon District in Can Tho City for the thermal power plants of O Mon I, O Mon II, O Mon III, and O Mon IV.
With stable operations, the project will provide about 5.06 billion cubic meters of gas per year for those thermal power plants to produce about 21.2 billion kWh of electricity.