The 298-km pipeline from the offshore PM3-CAA block, which also produces Bunga Kekwa crude oil in the Malay Basin straddling Vietnamese and Malaysian waters, to power plants in Vietnam’s southernmost province of Ca Mau, will have an initial capacity of around 135m cuft/d.
Petrovietnam is the sole investor for the $325-m pipeline project, and has engaged the Vietnam-Russia oil venture Vietsovpetro as the main engineering, procurement, and construction contractor.
At present, the country’s only gas pipeline, the Nam Con Son line, is operated by BP and provides gas for power plants in the southern region.
Malaysia’s Petronas, which also has a stake in the PM3-CAA block, has been taking around 1.25bn cum/yr of gas to generate electricity in Malaysia. However, officials from the Petrovietnam have said the gas from the PM3-CAA pipeline project would be used exclusively for Petrovietnam-operated power and fertilizer plants. The oil monopoly has begun construction of a 750-MW gas-fired power plant in Ca Mau which is expected to be operational by 2008.