Gazprom Gas-Engine Fuel LLC and Petrovietnam will develop the NGV market of Vietnam
On October 4, 2013, Gazprom and Petrovietnam signed an Agreement on the basic principles of the Joint Company establishment. Gazprom Gas-Engine Fuel LLC will represent Gazprom Group.
The purpose of the agreement is the implementation of cooperation on the production and use of gas as NGV fuel in Vietnam. The authorized capital of the Joint Venture will be distributed as follows: Gazprom Gas-Engine Fuel LLC - 25%, Gazprom International - 25%, Petrovietnam - 50%.
The company will be engaged in the implementation of joint oil and gas projects in the production and use of gas as NGV fuel; development and management of gas distribution systems and networks of refueling complexes; design and construction of oil and gas power engineering facilities, etc. The document provides the organization of works on the convert of public transport in Ho Chi Minh City to NGV fuel.
The implementation of large-scale projects with such large foreign companies as Petrovietnam will increase the efficiency of selling natural gas abroad. Representatives of the Agreement parties noted the high potential and importance of joint NGV projects for the economy and fuel energy complex of Vietnam.
Gazprom Gas-Engine Fuel LLC is a single operator for NGV market in the Russian Federation . The company was established in December 2012 with the Gazprom participation. The company's goal is to expand the use of methane as a NGV fuel, which, compared to traditional fuels, is more environmentally friendly, economical and safe. The company cooperates with federal and regional authorities, financial institutions, manufacturers of machinery using methane and gas-cylinder equipment. The company's investment program for 2013-2014 is planned at a rate of 13,8 billion rubles and includes building and reconstruction of 99 objects of NGV infrastructure.
Gazprom International is a unified specialized enterprise for the implementation of Gazprom's projects in the field of hydrocarbon exploration, exploration and production outside the Russian Federation. Currently, the company operates in nineteen countries around the world, including Uzbekistan, Tajikistan, Kyrgyzstan, Vietnam, Bangladesh, Algeria, Bolivia, Venezuela, the Dominican Republic, in the North Sea.
Gazprom considers NGV market as a promising line of business for the company whose main goal is to increase the economic efficiency of selling Russian gas abroad. On May 14, 2013, Gazprom and Petrovietnam signed a Memorandum of Understanding on cooperation in the production and use of gas as NGV fuel in the Socialist Republic of Vietnam.
On October 4, 2013, Gazprom and Petrovietnam signed an Agreement on the main principles of the joint venture for the project implementation on the use of natural gas as NGV fuel Vietnam, which provides the development of cooperation between companies for the conversion of public transport vehicles to NGV fuel in Ho Chi Minh City.