In a statement, JBIC said it signed the agreements with MOECO Vietnam Petroleum Co., Ltd., MOECO Southwest Vietnam Petroleum Co., Ltd., and MOECO Southwest Vietnam Pipeline B.V., amounting to approximately $167m, $161m, and $87m, respectively.
The borrowings are co-financed with private financial institutions, bringing the total co-financing amounts to $335m, $322m, and $175m, respectively.
Block B gas field is located off the southwest coast of Vietnam. Pipelines will be built to transport fuel gas to thermal power plants in the southwest area, which will be done by cooperating with Vietnam Oil and Gas Group, and PTT Exploration and Production Public Company Limited of Thailand.
“The loans will not only support the resources development by a Japanese company, but it will also contribute toward the energy transition in Vietnam,” JBIC said.
Vietnam has announced its goal to achieve carbon neutrality by 2050 and formulated the Power Development Plan 8 (PDP8) in May 2023. The PDP8 aims to reduce the proportion of coal used for power generation and to use domestic gas and liquified natural gas as power sources in the transition period.
