Vietnam has logged another natural gas discovery in the offshore Song Hong Basin in a prospect explored by Italian energy company Eni and Essar Oil of India as the Vietnamese also advance with two LNG import projects.
The Milan-based oil and gas player, the operator of the discovery, said the well result indicated “significant potential” for hydrocarbon accumulation.
Eni has a 50 percent stake in Block 114 and the balance of the shares is held by Mumbai-based Essar.
The Italian company has been in Vietnam since 2013 and currently operates four blocks all located in the under-explored Song Hong and Phu Khanh basins, offshore central Vietnam.
The Vietnamese have emerged over the past few years as sizeable natural gas producers in Southeast Asia and the government is also contemplating LNG imports to help its economic expansion.
All of Vietnam’s natural gas output is consumed domestically and the nation as yet has no imports, neither in the form of LNG nor by pipeline.
Novatek, the owner and developer of two Russian Arctic region LNG export plants, is the latest company to have signed an accord to help Vietnam develop an LNG import terminal.
The latest project would be Vietnam’s second venture and would be sited next to a gas-fired power station in Ninh Thuan province south of Cam Ranh Bay.
The first LNG import terminal venture involves General Electric of the US and is located in Bac Lieu Province in the southern Mekong Delta. That venture is being developed with full foreign infrastructure investment.