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Thursday, March 11, 2010

PetroVietnam Gas Consortium Signs $1 Billion Pipeline Deal -Official

By Nguyen Pham Muoi

Dow Jones Newswires

HANOI -(Dow Jones)- State-run PetroVietnam Gas Corp. has signed a $1 billion Business Cooperation Contract with Chevron Corp. (CVX), MOECO and PTTEP to build and operate a gas pipeline in South Vietnam, a PetroVietnam Gas official said Friday.

The consortium, which signed the deal in Hanoi late Thursday, will build the nearly 400-kilometer pipeline to bring natural gas from Block B offshore to an existing power complex in Can Tho city in the Mekong Delta region for 25 years, said the official.

The official, who declined to be named, didn't provide details on the stakes of each participant in the deal.

The pipeline is expected to help transport 18.3 million cubic meters of natural gas a day, or 6.4 billion cubic meter a year, he told Dow Jones Newswires.

Of the pipeline's total length, 246 kilometers will be undersea and 152 kilometers will be onshore, he noted.

He added that Chevron has been building a gas production facility in Block B for nearly a decade.

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