Russian firms ink joint energy deals

VietNamNet Bridge – Several energy projects are expected to be implemented by Vietnamese and Russian firms in the coming year.

Russian firms, energy projects, nuclear, Dung Quat

Russian Ambassador to Vietnam Andrey Kovtun told VIR at a press conference last week that Vietnam and Russia planned to implement a number of joint energy projects in 2014, including both nuclear and oil and gas.

He stressed that the two nations had recently established a joint task force working to boost Russian priority investment projects in Vietnam.

“The task force has tentatively announced 12 investment projects valued at $20 billion,” he said, adding that “Vietnam and Russia are discussing other projects and have just inked a deal to establish a factory in Vietnam to produce gas for industrial engines. The project will begin next year.”

“Notably, next year will also see the two sides sign a deal to expand Vietnam’s Dung Quat oil refinery, the only operating facility of its kind in Vietnam,” he continued.

Gazprom Neft and state-run Vietnam Oil and Gas Group (PetroVietnam) in November signed a framework agreement setting out terms of Gazprom Neft’s proposed acquisition of a stake in the refinery and its planned modernisation programme.

Gazprom Neft will acquire a 49 per cent share in the Binh Son Refining and Petrochemical plant and manage the facility. The two parties are currently negotiating the price according to a company press release.

As part of the modernisation programme, Dung Quat’s capacity would be increased from the current capacity of 6.5 million tones to 10-12 million tonnes within a year, and the technical efficiency of its motor fuel production improved to meet the Euro-5 standard. Gazprom Neft’s financial contribution to the project would be proportional to its stake.

“Our company’s long-term strategy calls for a major increase in refining volumes outside Russia. Access to Dung Quat will allow Gazprom Neft to enter the Asian market for refined products, one of the fastest growing and most promising markets in the world,” said Gazprom Neft chairman Alexander Dyukov.

“To realise this project, Gazprom will draw from the company’s extensive experience in modernising our refining in Russia and Europe, where all our plants now produce fuel that meets the Euro-5 standard. Through working with PetroVietnam we will ensure the Vietnamese market enjoys a stable supply of refined products that meet global standards,” he added.

In November PetroVietnam signed four deals with Rosneft, Gazprom, and Zarubezneft for oil and gas projects both in Vietnam and Russia. These projects are slated to kick-off next year.

The ambassador also said in December 2013 that representatives from the two governments finalised a supplementary document of the Russia-Vietnam Intergovernmental Agreement signed in 2010. The document would allow the Russian-Vietnamese Vietsovpetro to exploit oil and gas in Russia.

In terms of bilateral nuclear co-operation, Kovtun also announced Russia’s Rosatom Nuclear Energy State Corporation had nearly completed a feasibility study for Vietnam’s project to build the Ninh Thuan 1 nuclear power plant. The first and second nuclear units are scheduled to be launched in 2023 and 2024.

“We will support Vietnam in not only building this plant, but also in training experts and developing a nuclear industry. We are working on a project to build a nuclear science and technology centre in Vietnam which will become one of Southeast Asia’s leading nuclear science centres,” Kovtun said.

Russia currently has 93 investment projects in Vietnam with a total registered capital sum exceeding $1.93 billion. Vietnam has 17 investment projects in Russia registered at $2.4 billion.

Source: VIR

Russian firms, energy projects, nuclear, Dung Quat