PV GAS signed contracts under the adjusted "Nam Con Son 2 Gas pipeline project"

The adjusted "Nam Con Son 2 gas pipeline project

At the ceremony, PV GAS (represented by the Southeast Gas Project Management Board - PVSEG) signed EPC contracts for sea pipeline; pipe production; pipe coating under the adjusted Nam Con Son 2 Gas pipeline project with Technip Geoproduction Contractors (M) SDN BHD (TECHNIP)/ PV PIPE/ and PV COATING.

The corporation (represented by Gas Projects Management Company) also signed an EPC contract under the project on collecting and transporting gas from Sao Vang - Dai Nguyet gas field with PetroVietnam Technical Services Corporation (PTSC).

As part of the “Vietnam Gas Industry Development Master Plan to 2025, with vision until 2035" approved by the Prime Minister, the Nam Con Son 2 Gas pipeline project plays an important role in the synchronous infrastructure development of Vietnam's gas industry. It was completed and put into use phase 1 in 2015 with 151km of sea pipeline from KP 207.5 to the BK-Thien Ung rig.

Investment scale of the adjusted Nam Con Son 2 project phase 2 includes a 118 km long sea pipeline, connecting the KP 207.5 to the Long Hai station on shore; pipelines from Long Hai station to Gas Processing Plant (GPP2) at Dinh Co about 8 km. Pipelines transporting dried gas from GPP2 to GDC Phu My: about 29.5 km; a shutoff valve station in Phuoc Hoa and a gas receiving system NCS2 at Phu My gas distribution center; 2 pipeline routes (Condensate 6 "and LPG 6") with a length of about 25km from GPP2 to Thi Vai and 3 shutoff valve stations along the pipeline; GPP2 in Dinh Co.

Phase 2 of the project consists of main bidding packages: EPC of sea pipelines (EPC-1); EPC of GPP2 plant (EPC-2); EPC section of onshore pipelines and stations (EPC-3); Procurement of steel plates; steel pipe production; pipe coating; and some other bidding packages. Of these, the EPC-1 will be assumed by TECHNIP contractor as this is one of important bidding packages of the project. Meanwhile, PVPIPE and PVCoating produce and coat pipes for 126km of gas pipelines with diameters of 26” and 29.5km of others with diameter 30”.

The signing of the three above-mentioned contracts aims to complete connections with the sea pipeline section and be ready to receive Sao Vang - Dai Nguyet gas expected in the third quarter of 2020.

The project on collecting and transporting gas from Sao Vang - Dai Nguyet gas field

This project is also of great importance and urgent. The main work is to construct and connect a pipeline system from the Sao Vang compressing rig to the existing Nam Con Son 2 pipelines, and also connecting with the Thien Ung - Dai Hung gas field to collect and transport ashore gas output of Sao Vang - Dai Nguyet and Thien Ung - Dai Hung. It is expected that when the project is completed at the end of 3rd quarter in 2020, the gas output transported ashore will be about 2-3 billion m3 a year, supplementing gas resources for the Southeast region. The project makes the most of the available gas industry infrastructure of PV GAS, improving investment efficiency, as well as the efficiency of offshore gas exploitation. This gas pipeline system has a designed capacity of 280 MMSCFD (equivalent to 7.9 MMSCMD).

Speaking at the signing ceremony, a representative of contractors, Mr. Torfinn Akselsen - Vice President of TECHNIP in Asia expressed their commitments, showed their determination to coordinate efforts to implement the contracts safely, efficiently, and on schedule. He also emphasized the honor and responsibility of contractors when participating in this particularly important project, which receives special attention, directions and close supports from the Government, PVN and PV GAS, contributing to ensuring energy security, and ensuring raw materials for electricity production.

Mr. Le Manh Hung, PVN's General Director highly appreciated the capabilities and experience in successfully implementing contracts of the parties, and showed his belief in PV GAS as an investor. He also expressed his hope that the General Contractor PTSC and contractors TECHNIP, PV PIPE, and PV Coating are fully aware of the investor’s requirements to complete assigned works, ensuring safety, quality, efficiency, on schedule and in accordance with procedures and processes.

He believed that, the Nam Con Son 2 Gas pipeline project and the project on collecting and transporting gas from Sao Vang - Dai Nguyet gas field when becoming operational will contribute to stabilizing national energy security, adding gas resources to meet the growing demand for energy consumption for the country’s economic development.