Gazprom accelerates project on eco-fuel

Among Gazprom’s various channels of collaboration in Vietnam is a project to introduce natural gas as a fuel for everyday-use vehicles-Photo: Le Toan

Last week, a delegation headed by Alexey Miller, chairman of Gazprom’s Management Committee was hosted by President Tran Dai Quang, and Prime Minister Nguyen Xuan Phuc.

Special attention was given to the prospect of broader co-operation between companies on hydrocarbon development in Vietnam and Russia. The parties also discussed the joint implementation of the Natural Gas for Vehicles project – a cost-efficient and eco-friendly fuel system which Gazprom is planning to develop both in Russia and abroad.

Last year saw the registration of PVGAZPROM, a Russian-Vietnamese company focused on the use of natural gas as a fuel for passenger vehicles. The joint venture consists of Gazprom International (35.5 per cent), Gazprom Gazomotornoye Toplivo (35.5 per cent), and PetroVietnam Gas (29 per cent).

The two sides have worked together on the preparation and the implementation of the road map for this project.

They also discussed collaboration in the energy sector. At the meeting, both sides emphasised the great potential for bilateral co-operation in this area.

Miller attended another working meeting with Nguyen Quoc Khanh, chairman of Vietnam’s oil and gas group PetroVietnam’s Board of Directors, and Nguyen Vu Truong Son, president and CEO of PetroVietnam.

This meeting focused on the exploration activities in blocks 112 and 129-132, as well as the joint development of the Moc Tinh and Hai Thach fields in Vietnam.

To date, these fields have already seen the construction of 12 production wells, three production platforms, a floating hydrocarbon storage terminal, and a submarine pipeline system.

Accumulated production from the Moc Tinh and Hai Thach fields since its launch in 2013 has reached 4.5 billion cubic metres of gas and 1.1 million tonnes of gas condensate.

The meeting also reviewed the progress in the joint development of the Nagumanovskoye and Severo-Purovskoye fields in Russia.

Vietgazprom, the joint operating company established by Gazprom and PetroVietnam on a parity basis, conducts exploration activities in blocks 112 and 129-132 located on the continental shelf of Vietnam.

In 2015, Gazprom and PetroVietnam signed an agreement on the major terms and conditions of developing the Nagumanovskoye (Orenburg Region) and Severo-Purovskoye (Yamal-Nenets Autonomous Area) fields. Gazpromviet (Gazprom – 51 per cent, PetroVietnam – 49 per cent) holds development licences for both fields.