Gazprom chairman, Alexey Miller, and CEO of PV Gas, Do Khang, have signed an agreement to set up a joint venture to promote the use of natural gas for vehicles.
The creation of the Russian-Vietnamese joint venture 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 agreement primarily relates to the provision of resources to convert public transport in Ho Chi Minh City to NGV (Natural Gas Vehicle) fuel.
PV Gas will have a 50% stake in PVGAZPROM NGV, while Gazprom will be represented by subsidiaries Gazomotornoye Toplivo and Gazprom International, each holding a 25% stake in the joint venture.
The project will commence in the south of the Republic of Vietnam. Natural gas from the Nam Con Son basin fields and petroleum gas from the Cuu Long basin fields will be transported to Nam Con Son Terminal and gas processing plants for treatment and liquefaction. Liquefied natural gas (LNG) will then be transported to Ho Chi Minh City by methane carriers. Once the regasification process is completed, compressed natural gas (CNG) will be delivered to filling stations across Vietnam.
Miller commented: “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”.
Adapted from press release by Katie Woodward
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