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Opportunities from the electricity and gas industry

“Super Project” from Ca Voi Xanh field is being accelerated by developers. The dream of the electricity and gas industry formed in Dung Quat is coming. Once put into operation, this project will provide a particularly important source of natural gas for power generation and petrochemical purposes, etc. This is a driving force for the development of Quang Ngai provincial industries.

Will be launched in 2019

The Blue Whale (Ca Voi Xanh) gas field which is located from the Central coast about 100km to the East, operated by the US Exxon Mobil Corporation. The development consists of an offshore platform, a pipeline to shore, an onshore gas treatment plant (GTP) and pipelines that supply gas for power generation for four power plants. On January 13th 2017, in Vietnam, PetroVietnam Exploration Production Corporation and ExxonMobil signed Ca Voi Xanh Project Framework and Gas Sales Heads of Agreements.

Chairman of the provincial People’s Committee Tran Ngoc Cang granted the memorandum to Sembcorp.

About Dung Quat Power Center, according to the plan approved by the provincial People’s Committee in June 2018 and Ministry of Industry and Trade in July 2018, Dung Quat Power Center is located in Binh Thanh commune (Binh Son District), Dung Quat Economic Zone. According to the plan, there will be 4 mixed gas turbine power plants with capacity of 750MW each. The Prime Minister assigned Electricity of Vietnam (EVN) as the investor of Dung Quat I and III power plants, expected to put into operation by 2023 and 2024-2026 respectively, Sembcorp Group (Singapore) is the owner of Dung Quat II Power Plant which will be put into operation in 2024 and  a spare area to develop a new plant with a capacity of about 750MW.

Up to now, the Green Whale Project has made significant progress. After several negotiations, ExxonMobil and Dung Quat EZ and Quang Ngai Industrial Zones (DEZA) have reached an agreement on the location of the gas pipeline from Quang Nam to Dung Quat Power Center. At the working session, ExxonMobil representative, Patty Graham said: “At present, Exxon Mobil is bidding for the overall design of the entire Ca Voi Xanh Project (including the pipeline from Chu Lai to Dung Quat). In 2019, investors will focus on compensation, land clearance and land procedures. It’s expected in 2020, they will start their construction.

On the side of investors at Dung Quat Electricity Center, in April 2018, in Singapore, Mr. Tran Ngoc Cang – Chairman of Quang Ngai People’s Committee and Mr. Atul Nargund – Vice President of business development of Sembcorp Group signed cooperation memorandum (MoU) on Dung Quat Gas Project. Accordingly, Sembcorp will conduct a feasibility study for 750MW Vietnamese gas power plant with an area of 6.15ha in Dung Quat Economic Zone, Quang Ngai Provincial People’s Committee will support and provide information to investors during their study. On November 20th , 2018, Ministry of Industry and Commerce approved the feasibility study report of this project.

About 1 billion m3 of gas will be used to connect Dung Quat Refinery for deep processing.

For EVN investors, at the meeting with the chairman of the provincial People’s Committee Tran Ngoc Cang in mid-November, 2018, Nguyen Tai Anh – Deputy General Director of EVN, said that for projects at Dung Quat Power Center are being deployed as planned.

The shared infrastructure project has completed the feasibility study (FS) and EVN is considering implementation of the project. According to the proposed progress in the FS, the project will have to be completed in 2020 to hand over the construction of Dung Quat mixed gas turbine power plants in early 2021.

“Be ready” to welcome investors

Speaking about the project, Dam Minh Le, Vice Chairman of DEZA, said that the DEZA is concentrating on all necessary resources to accelerate the implementation of this project in Dung Quat EZ.

The total area of Dung Quat power plant is about 303.5ha, of which the land area is 107.3ha (construction of power plants is about 93.3ha, the management area for two investors is about 14ha) and the water area is about 196.2 ha.

To ensure the progress of the project, Mr. Dam Minh Le said that the DEZA is submitting to the Provincial People’s Committee for approval the addition of land use plans in 2018; Binh Son District People’s Committee issued notice of land acquisition, setting up a compensation plan, site clearance, etc. At the same time, DEZA has directed the Dung Quat Land Development Center to sign with EVN, Sembcorp and Exxon Mobil to carry out land compensation, land clearance by the end of 2019.

General planning of Dung Quat economic zone up to 2025.

According to economists, Dung Quat EZ, as well as the Chu Lai Open Economic Zone, will have a wave of new investors after the products of  Ca Voi Xanh gas field is transported on-shore. Therefore, DEZA is reviewing and adjusting the planning of industrial zones in Dung Quat EZ, calculating the investment in infrastructure between the IZs, between Dung Quat power plant and other businesses investing in fuel and gas sources.

 In addition, will take advantage of the projects using gas products after they have been transported on-shore to produce petrochemicals, chemicals and gas for industries, etc in order to contribute to promoting industrial development of the province.

By T.Giang

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Agency:Copyright by the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority
Editor:Mr.Dam Minh Le - Vice Chairman
Address: Van Tương New urban area - Binh Son District - Quang Ngai Province
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