A ceremony to mark the first gas flow from Sao Vang Mine to Nam Con Son 2 pipeline

The project located in the 05-1b and 05-1c  blocks of the Nam Con Son Basin is a prerequisite for the development of the Nam Con Son 2 projects, which are PV GAS’ key ones. In the Contract of Petroleum and Gas Exploitation in 05-1b and 05-1c blocks, the participation of Idemitsu Kosan Co., Ltd. is 43.08 per cent and becomes the Operator; the participation of Teikoku Oil (Con Son) Co. Ltd is 36.92 per cent; and 20 per cent for Vietnam Oil and Gas Group. With an annual output of nearly 1.5 billion cubic metres of gas; and 2.8 million barrels of crude oil and condensate; Sao Vang - Dai Nguyet gas field will contribute a significant source of revenue to the country’s state budget and the economy. It also will ensure commitments to supply gas to consumers in the Southeastern region when other gas sources will start to decline since 2020. The gas source for electricity production in the Southeastern region accounts for nearly 22 per cent of the country's electricity output.

The Nam Con Son 2 gas pipeline projects include the adjusted Nam Con Son 2 and the Sao Vang-Dai Nguyet gas pipeline sub-projects invested by PV GAS.

The Nam Con Son 2 gas pipeline project has been carried out for a long time. The project’s the first phase started in April 2013 and put 151km of sea pipeline from BK-Thien Ung rig to the connection point with Nam Con Son pipeline into use in the end of 2015. The project’s the second phase includes 118 km of sea pipeline from KP 207.5 to the Long Hai station on the mainland; nearly 10 km from Long Hai station to Dinh Co gas treatment plant; and nearly 29km to transport dry gas products to Phu My Gas Distribution Center.

At the same time with the implementation of the Nam Con Son 2 pipeline project, the investment in the construction of the gas gathering and transporting pipeline from Sao Vang - Dai Nguyet field also is promptly completed to gather and transport 2-3 billion cubic metres of gas per year from offshore Sao Vang - Dai Nguyet and Thien Ung - Dai Hung fields to the shore.

The gas gathering and transporting pipeline from Sao Vang - Dai Nguyet field contains two component pipelines including the one from Thiên Ưng rig to Sao Vang rig with the length of 23km and the 23-km other to transport gas from Sao Vang rig connected to Nam Con Son 2 at BK Thien Ung area.  

The workload of each above project was very large while the time of designing, buying materials and equipment, construction and installation of equipment for each project was so short (nearly 12 months since signing EPC contracts for marine and shore pipeline projects). This was a big challenge for the project’s management team of the investor as well as the General Contractor.

The year 2020 was a particularly difficult year when the Covid-19 epidemic has broken out worldwide. Almost all countries in the world (especially European countries – which produce and supply materials and equipment for the projects in a long term) and Vietnam and Malaysia (where the headquarters of the EPC general contractor of NCS 2 marine pipeline, and the marine pipeline construction contractor of Sao Vang - Dai Nguyet project are located) have issued travel restrictions.

In this context, the participating parties have carried out a series of innovative solutions with high practicality to ensure the long-term supply of materials and equipment for the projects. They have studied about many different ways for their experts to enter Viet Nam to work. They have even imported parts of vehicles, equipment, and ships for pipe construction from other countries in the world to Viet Nam for assembling.

The implementation process has also faced difficulties caused by complicated sea weather in 2020, with many storms taking place continuously in recent months during the peak time in the construction. Therefore, the ceremony to mark the first gas flow was also an event to recognize all efforts, determination and effective cooperation to actively carry out the Nam Con Son 2 Projects of the Investor - PV GAS and the Joint General Contractor. It also showed that the project would be completed as schedule to ensure quality and safety. At the ceremony, the delegates witnessed the first gas flow from Sao Vang - Dai Nguyet field merged into Nam Con Son 2 pipeline.

The ceremony to mark the first gas flow from Sao Vang - Dai Nguyet field to Nam Con Son 2 pipeline was organised with the witness of delegates, in joy and confidence to promise to complete Nam Con Son 2 Projects in the near future.