Alexey Miller, Chairman of the Gazprom Management Committee and Do Van Hau, President and CEO of Petrovietnam National Oil and Gas Group signed today in Hanoi the Agreement on setting up a natural gas for vehicles joint venture.
The signing ceremony took place in the presence of Russian President Vladimir Putin and Vietnamese President Truong Tan Sang.
The creation of the Russian-Vietnamese joint company PVGAZPROM Natural Gas for Vehicles became a practical step in implementing the agreements previously achieved with the Vietnamese authorities on using natural gas as a vehicle fuel. The documents, among other things, provide for converting public transport of Ho Chi Minh City to NGV fuel.
A subsidiary company of Petrovietnam – PV Gas – will have a 50 per cent stake in the joint venture. Gazprom will be represented in the joint venture by Gazprom Gazomotornoye Toplivo and Gazprom International, each holding a 25 per cent stake.
The southern part of the Republic of Vietnam will be a starting point for the project. Natural gas from the Nam Con Son basin fields and associated petroleum gas from the Cuu Long basin fields will be conveyed to Nam Con Son Terminal and Dinh Co. gas processing plants near Vung Tau for treatment and subsequent liquefaction. Afterwards liquefied natural gas will be transported to Ho Chi Minh City by methane carriers. Once the regasification process is completed, CNG will be delivered to filling stations across Vietnam.
“Setting up the third Russian-Vietnamese joint venture with Gazprom's participation is a clear evidence of the rapid evolution of our strategic partnership with Vietnam. We are already carrying out joint hydrocarbon exploration and production activities and cooperating in the LNG sector.
The joint NGV initiative in Vietnam is Gazprom's first project of a kind in the promising Asia-Pacific market. The project will contribute to further boosting the economic efficiency of Gazprom's business, expanding its geography in Asia-Pacific as well as diversifying the Company's output,” said Alexey Miller.
