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Vietnam’s first $286 million natural gas import project postponed

By Toan Dao   April 19, 2016 | 08:29 am GMT+7

The national oil and gas group, better known as PetroVietnam, has told its gas subsidiary, PetroVietnam Gas, to temporarily put on hold work on the country’s first proposed $286 million liquefied natural gas (LNG) import terminal at Thi Vai to review the feasibility of the project.

The 1 million ton/year terminal, located in the Ba Ria Vung Tau southern coast province, was viewed as "not practically urgent yet", the Vietnam’s largest gas firm said in a report presented at its 2016 shareholders meeting held on April 15. PV Gas had earlier expected to inaugurate the Thi Vai terminal in 2017.

The firm will go over the feasibility of the project and seek the parent company’s approval for resuming work on the terminal this year, according to the report.

PV Gas in June 2014 signed with Shell the Master LNG Sale and Purchase Agreement for the Thi Vai terminal and the Memorandum of Understanding on development cooperation on the second terminal at Son My. Three months before that, PV Gas and Gazprom Marketing & Trading Singapore signed the Master LNG Sale and Purchase Agreement for the Thi Vai.

PV Gas also said it is waiting for PetroVietnam’s approval for the feasibility study it submitted in 2015 regarding the Son My terminal in Binh Thuan central province. The project will have capacity of 3.6 million tons per year by 2020, which will be raised to 6 million tons per year by 2025 and 10 million tons per year after 2025, the company said.