State-owned Vietnam Oil and Gas Group (Petrovietnam) and Malaysian state-owned Petroliam Nasional Berhad (Petronas) announced Monday they’ve signed a framework agreement for gas supply, Kallanish Energy reports.
Petrovietnam will buy more gas from Petronas and “other Malaysian gas sources,” an official statement reads. The feedstock will be transported to the Ca Mau Gas-Power-Fertilizer Complex, a complex of gas pipeline, urea plant and thermal power plant located in Southern Vietnam.
At the moment, the complex receives gas from a block overlapping the two countries. Petrovietnam’s priority is to maximize gas demand during the dry season and the company will receive support from Petronas to deal with excess gas in the dry season.
However, between the end of this year and the start of next year, it’s expected the demand for gas will exceed supply, with a gap of more than 35 billion cubic feet per year. The new agreement is aimed at balancing this shortfall and ensuring energy security in the area.
At the signing ceremony, deputy director general of Petrovietnam Nguyen Quoc Thap, said this agreement confirms the effective cooperation between the two companies.
