Nam Con Son 2 Gas Pipeline, Vietnam

PVCOATING delivered the first 20km of coated pipes for the project in October 2014.

The Nam Con Son 2 Gas Pipeline involves the construction of a 325km offshore gas pipeline, approximately 39km of onshore gas pipelines and a 25km onshore liquid pipeline to recover and transport gas reserves from gas fields located within blocks 05.2, 05.3, 04.3 and 04.1 in the Nam Con Son (NCS) Basin, offshore Vietnam, for onshore processing.

Su Tu Nau (Brown Lion) Oil Field, Cuu Long Basin, Vietnam

Su Tu Nau field is located in Block 15-1, Cuu Long Basin, Vietnam, approximately 180km south-west of Vung Tau.

The pipeline is also designed to transport imported gas from other ASEAN countries to meet the demands from South-Eastern and Southern Vietnam.

The project is being developed by PetroVietnam Gas (PVGas) in phases, with the first phase scheduled to come online in 2015.

Nam Con Son 2 pipeline details

The pipeline is designed to transport and process approximately 20 million standard cubic metres a day (MMSCMD) of gas. The 325km-long offshore section will start from Hai Thach wellhead platform (WHP), pass through the Thien Ung field central processing platform (CPP), extend further to BT-7 Platform at Bach Ho field and culminate at a landfall point in Long Hai.

Phase I involves the installation of approximately 151.35km-long and 26in diameter offshore pipeline originating from the Thien Ung CPF and culminating at the Bach Ho pipeline tie-in point. The pipeline will connect with the Bach Ho rig (BK4A) in the process and will transfer gas from both the Thien Ung and Dai Hung fields to the landfall facility.

The onshore element of the project includes a 300m gas pipeline from the landfall point to a new landfall station at Long Hai, a 9km gas pipeline from the landfall station to the new gas processing plant 2 (GPP2) at Dinh Co, a 30km-long and 30in diameter gas pipeline from Dinh Co GPP2 to Phu My Gas Distribution Center (GDC), a new line block valve (LBV) station with cold vent adjacent to LBV Phuoc Hoa station, and two 25m liquid product pipelines connecting Dinh Co GPP2 outlet to Thi Vai terminal.

The GPP2 will be designed to recover LPG and have provisions for future ethane recovery, while the Phu My GDC will be equipped with pig receiver, metering system and future tie-ins. A permanent access road will be constructed between the Landfall Station and Dinh Co GPP 2 to facilitate future operation and service.

The onshore sections of the pipeline will run parallel to the existing Nam Con Son-1 gas pipeline, jointly owned by Rosneft (32.7%), Perenco (16.3%) and PV Gas (51%).

Contractors involved with the Vietnamese offshore gas transfer project

The engineering, procurement and construction (EPC) contractor for the project is the Vietsovpetro (VSP) joint venture, who was awarded the contract in May 2014.

The front-end engineering and design (FEED) study for the project was performed by PetroVietnam Engineering, while the industrial engineering services were rendered by Dorsch Gruppe.

PVPIPE is supplying the steel pipes and associated hot induction bends, risers and processing buckle arrestors for Phase I. The API 5L X65M PSL2 standard pipes will have a wall thickness of 19.1mm, 23.8mm and 25.43mm.

"The pipeline is designed to transport and process approximately 20 million standard cubic metres a day (MMSCMD) of gas."

The application of anti-corrosion on the bends and anode installations and concrete weight coating of the pipes are being performed by PVCOATING. The first 20km of the coated pipes were delivered in October 2014.

Financing for the Nam Con Son 2 pipeline project

The overall investment in the project is estimated to be $1.3bn, with approximately $400m earmarked for Phase I.

A $280m credit facility is being provided by a syndicate of 11 foreign banks led by Cathay United Bank as the mandated lead arranger, and including the Bank of Tokyo - Mitsubishi UFJ, Oversea - Chinese Banking, First commercial Bank, HuaNan Bank, May Bank, Taipei Fubon Bank, E. Sun commercial Bank, Taiwan Shin Kong Commercial Bank, and The Shang Hai Commercial & Savings Bank.

The payback period is seven years, extendable by two additional years.

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