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PQPOC selects contractors for a US$1bn gas project in Vietnam

Phu Quoc Petroleum Operating Company (PQPOC) has awarded a preliminary letter of award to a consortium led by McDermott International and Petrovietnam Technical Services Corporation (PTSC) to develop the Block B gas development project off the southwest coast of Vietnam. The award, with a contract value exceeding US$1bn, tasks the consortium with engineering, procurement, construction, installation (EPCI), and hook-up and commissioning (HUC) services for various offshore facilities. These facilities include a central production platform, living quarters platform, a flare tower, and connecting bridges off the southwest coast of Vietnam. The project is anticipated to start operations in early 2024. 

Vietnam’s gas production, which surged between 1995 (around 220 mcm) and 2014 (nearly 11 bcm) with the commissioning of the Nam Con Son field in 2002, has been declining since then, reaching 7.2 bcm in 2021. The Master Plan for Vietnam Gas Industry Development to 2025 (with an outlook to 2035) (2017) aims to achieve a gas production of 17-21 bcm/year between 2026 and 2035 and targets a gas demand of 23 to 31 bcm in 2026-2035 and LNG imports of 5 Mt in 2025, 10 Mt in 2030, and 15 Mt in 2035.