[Vnbiz] Deal signed Pipelines

[Craig Stevenson]

State-owned Vietnam Oil & Gas Corp., known as PetroVietnam, signed a
contract with Malaysia-based Nacap Asia Pacific to build a 25-mile
natural-gas pipeline in southern Vietnam. Construction is to begin in
October and will take 18 months, a PetroVietnam official said, adding that
the contract is valued at $65 million. The pipeline, with an expected
capacity of two billion cubic meters a year, will run from PetroVietnam's
gas facility in Ba Ria-Vung Tau province to the Nhon Trach power complex in
Dong Nai province. At the Nhon Trach complex, the government plans to build
gas-fired power plants with a total generation capacity of more than 2,600
megawatts, the PetroVietnam official said. Vietnam has abundant natural-gas
resources, but a lack of pipelines to fuel power plants or other industrial
facilities limits the growth of the gas sector. Demand for electricity in
Vietnam is expected to grow 15% annually through 2010. BP PLC operates the
sole gas pipeline in Vietnam, with a supply capacity of more than
3.2billion cubic meters a year.
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