Alexey Miller, Chairman of the Gazprom Management Committee, and Do Khang Ninh, Chief Executive Officer of PV Gas (subsidiary of Petrovietnam), agreed to establish the joint company PVGAZPROM Natural Gas for Vehicles. The signing ceremony took place in the presence of Russian President Vladimir Putin and Vietnamese President Truong Tan Sang.
PV Gas will have a 50 per cent stake in PVGAZPROM NGV. Gazprom will be represented in the joint venture by Gazprom Gazomotornoye Toplivo and Gazprom International, each holding a 25 per cent stake. The initiative includes converting public transport of Ho Chi Minh City to CNG.
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 LNG 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.
“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, and 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 Miller.