PetroVietnam, Vietcombank Ink $1B Deal for Block B Gas Field, Pipeline
Petrovietnam and Vietcombank have inked a credit agreement for the Block B gas field and Block B-O Mon gas pipeline projects, ensuring a stable gas supply for the Mekong Delta's power plants and reducing reliance on imported energy in Vietnam.
The loan, amounting to $1 billion, will cover around 70% of the capital needed for the upstream and midstream projects. These projects play a crucial role in Vietnam's energy security strategy and the development of its gas and clean energy industries.
Petrovietnam, a state-owned oil and gas group, has seen robust growth this year. In the first nine months, its total revenue reached VND795 trillion ($30.16 billion), marking a 7% increase from the previous year. The company's consolidated revenue stood at about VND484 trillion ($18.36 billion), up 10%.
The Block B gas field, with an estimated reserve of 107 billion cubic meters over 20 years, is expected to produce its first gas in Q3/2027. It will supply around 5 billion cubic meters of gas annually to the power plants in the region. The Block B-O Mon gas pipeline, with a total investment of over VND28.8 trillion (nearly $1.2 billion), will facilitate this gas supply.
The credit agreement, signed as part of a larger credit contract in Vietnam's energy sector, will help drive these vital projects forward. Upon completion, they will significantly contribute to Vietnam's energy security and support its clean energy initiatives.
