A subsidiary of the State-owned oil and gas group PetroVietnam and its foreign partners have secured a license to invest in a natural gas pipeline in the south of Vietnam, making it the largest foreign investment project approved this year, the company reported on April 27, 2017.
The license for the Block B - O Mon pipeline in the Mekong Delta’s Kien Giang province was granted on April 20 to a joint venture between the PetroVietnam Gas (PV Gas), Vietnam’s largest listed energy firm, and a Japanese investor, the Foreign Investment Agency (FIA) at the Ministry of Planning and Investment wrote in a monthly report, without naming the investor.
PetroVietnam has identified the foreign partner as Japan’s Mitsui Oil Exploration Co. but also said that Thailand’s PTT Exploration and Production (PTTEP) would be a partner in the project.
The registered capital for the pipeline is $1.27 billion, according to FIA, making it the biggest new investment in Vietnam to receive government approval this year, while Samsung’s injection of $2.5 billion into its Samsung Display Vietnam plant in March is the largest additional funding to an existing FDI project.
Vietnam received $15.8 billion in foreign direct investment inflows last year.
The gas pipeline is expected to deliver 20.3 million cu m of natural gas per day to power plants in the 2 locations, with a total capacity of 3,660 MW.