PV Gas, Posco sign gas processing contract
PV Gas, Posco sign gas processing contract
PetroVietnam Gas Corporation (PV Gas) and a joint venture of South Korea's Posco Engineering Co Ltd., along with PetroVietnam Technical Services Corporation (PTSC), signed an engineering, procurement and construction (EPC) contract on August 13 for the VND5.5 trillion ($248.81 million) first stage construction of the Ca Mau Gas Processing Plant.
The project, located at Khanh An Industrial Zone, Khanh An Commune, U Minh District in the southern-most province of Ca Mau, includes construction of a gas processing plant, storage facility, port and a 37 km pipeline. Total investment capital for the project has been set at VND11 trillion ($497.62 million).
The Ca Mau Gas Processing Plant project will use the advanced liquid separation technology developed by UOP Company, a subsidiary of the US based Honeywell Corporation.
Raw materials for the plant will come from local mines, such as Cai Nuoc and others in the south western region.
Upon completion, after an expected period of 18 months, the project will annually supply the market with approximately 207,500 tons of liquefied petroleum gas (LPG) and 11,900 tons of condensate, generating revenue of about VND4.4 trillion ($199.05 million) and contributing approximately VND 500 million ($22.62 million) per year to the State budget.
Currently, PV GAS, the largest player in the LPG market in Viet Nam, has supplied gas for the production of nearly 35 per cent of the nation's electricity and maintains over 70 per cent of the domestic demand for LPG, serving many industries in the country.
