Malaysian energy giant Petronas signed a binding heads of agreement with Vietnam Oil and Gas Group (PetroVietnam) for the sales and purchase of additional gas from Malaysia to Vietnam.
According to the agreement, Petronas would deliver natural gas from Block PM3 CAA, Malaysia to Ca Mau Province, Vietnam, Petronas said in a statement.
The deal has been agreed in support of the country’s plan to spur its economic growth in its South West region.
PetroVietnam noted that in 2001, the government of Vietnam decided to invest in the construction of Ca Mau gas – power – fertilizer complex in Khanh An Commune with the demand for gas consumption of 2.2 billion m3/year.
The complex uses natural gas from Block PM3CAA in the overlapping area offshore Vietnam and Malaysia.
However, under the current terms, Vietnam expects the facility to experience a shortage of more than 1 billion cubic meters of natural gas per year.
The new deal would ensure PetroVietnam receives additional gas for Ca Mau gas – power – fertilizer complex to continue stable and efficient operation.