Quang Ngai stakes claim for Exxon Mobil project

                                                          Photo: Courtesy

Province in hot competition with neighboring Quang Nam to win multi-billion dollar project.

Central Quang Ngai province is competing with nearby Quang Nam province in seeking approval from authorities to secure an Exxon Mobil gas and power plant project.

Its People’s Committee has resent a document to the Ministry of Industry and Trade in its bid to win the project.

“Three locations have been submitted to authorities,” Mr. Le Van Dung, Deputy Manager of the province’s Dung Quat Economic Zone, unveiled with VET.

The People’s Committee also emphasized that Dung Quat can satisfy Exxon Mobil’s requirements. “If chosen, the province commits to creating the most favorable conditions possible in land clearance and resettlement and will offer incentives in land rentals,” Mr. Dung said.

The total amount of investment capital is yet to be disclosed. “The investor has not officially released any figures but specialists don’t believe it will be the $20 billion previously reported,” he said.

The power project is a joint venture between Exxon Mobil and the Vietnam National Oil and Gas Group (PetroVietnam). A 200-ha site is needed, with a 1,500 MW electricity plant to be built on half the land area in the first phase. A gas and power plant capable of generating 4,000-5,000 MW will be completed during the second phase. Once in operation the plant will consume 6 to 8 trillion cubic meters of natural gas from the Blue Whale field.

The large size of the project has triggered competition between Quang Ngai and Quang Nam, where Exxon Mobil and PetroVietnam have previously conducted land surveys. A working group on investment promotion for the gas and power plant at the Chu Lai Economic Zone was established three years ago. Quang Ngai province has also proposed favorable locations on a number of occasions.

During the first five months of this year Quang Ngai attracted four foreign direct investment (FDI) projects with registered capital of more than $20 million. The largest of these is a $13 million project from a Thai investor.

by Hong Nhung / vneconomictimes.vn