Ca Mau Gas - Power - Fertilizer Complex. (Photo: PVN)
The Vietnam Oil and Gas Group (PVN) has just issued a notice regarding the proposal to stop operations of the two Phu My and Ca Mau fertilizer plants to give gas to power generation by the Vietnam Electricity Group (EVN).
Accordingly, PVN believes that the owners of Phu My and Ca Mau fertilizer plants are joint stock companies, so any activities that affect production and business efficiency, or any long-term gas supply suspension/reduction as planned, must be approved by the General Meeting of Shareholders of these companies before implementation.
" The unplanned stop/reduction of gas supply to Phu My and Ca Mau nitrogenous fertilizer plants will have a huge impact on production and business activities, causing many consequences for related parties and will depend on the approval, goodwill, and cooperation of shareholders of the nitrogenous fertilizer plants ," the group said.
Furthermore, PVN believes that stopping/reducing natural gas from fertilizer plants does not help much (nearly 1%) to ensure the operation of the national power system.
According to this group, nitrogen fertilizer plants in the Southeast and Southwest regions have used natural gas as input material for production (there are no alternative materials) since 2006 until now.
" The demand for gas consumption has always remained stable at about 1.1 billion m3 of gas per year for the two Phu My and Ca Mau fertilizer plants. The planning for gas demand as well as the maintenance and repair plans for fertilizer plants to optimize gas supply are coordinated and implemented by the parties and agreed to comply with the strict regulations of long-term gas purchase and sale contracts ," PVN added.
To maintain long-term natural gas supply for electricity production, the group believes that agencies need to consider and issue a mechanism to develop stable and safe baseload power sources for the system; have a reasonable electricity price policy to help investors of power plants feel secure in signing long-term gas purchase contracts.
According to the plan, PVN and parties in the gas system in the Southeast and Southwest regions will provide about 5.6 billion m3 of gas (Southeast region about 4.3 billion m3 and Southwest region about 1.3 billion m3) for electricity production during the year.
According to PVN, the actual demand for natural gas mobilization for electricity production in the first quarter was very low, reaching only 96% of the assigned plan by the end of April. However, when the load of the power system increased, PVN and the parties implemented technical solutions to maximize the amount of domestic gas.
As of May 12, 13/47 large hydropower reservoirs had reached or were near dead water level, while the water levels of most of the remaining hydropower reservoirs were much lower than the water levels specified in the reservoir/inter-reservoir regulation process. On May 13, the Prime Minister issued an urgent dispatch to proactively deploy urgent measures to respond to the risks of heat, drought, water shortages, and saltwater intrusion.
(Source: Zing News)
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