A Gazprom worker. (Photo: financialtribune.com)
Gazprom and state-run energy firm PetroVietnam have set up a $1-billion joint venture, PVGazprom Natural Gas for Vehicles, which will specialize in producing engines fueled by compressed natural gas (CNG) in Vietnam.
The company is completing the construction of its main production plant and other functional facilities, including fuel distribution stations in the southern region, Kovtun Andrey, chief representative of Gazprom International, a subsidiary of Gazprom, told Ho Chi Minh City Mayor Le Hoang Quan at a meeting last week.
Meanwhile, Ho Chi Minh City is targeting using 100% gas-powered buses for public transportation by 2020.
As part of its expansion in southern Vietnam, Gazprom plans to build liquefied gas supply stations serving the transport sector in Dong Nai province, which is home to 30 industrial parks, and surrounding localities.
Russia’s largest natural gas group also plans to build a liquid gas plant in Dong Nai with a capacity of 250,000 tons per year.
Gazprom Neft, the oil arm of Gazprom, has been pursuing a plan to acquire a 49% stake in the Binh Son Refinery and Petrochemical Co Ltd, the operator of Dung Quat oil refinery, the country’s first oil processing facility, located in the central province of Quang Ngai.
The stake purchase by Gazprom Neft will enable the upgrade Dung Quat refinery, whose products will become non-competitive when an oil import tax cut in the ASEAN region is in place.