The Japan Bank for International Cooperation (JBIC) has finalized financing agreements totaling $832 million to support the development of Vietnam’s Block B gas field, which will supply thermal power plants in the southwest region. JBIC signed these agreements with MOECO Vietnam Petroleum Co., Ltd. ($167m), MOECO Southwest Vietnam Petroleum Co., Ltd. ($161m), and MOECO Southwest Vietnam Pipeline B.V. ($87m). These funds are supplemented by co-financing from private financial institutions, amounting to $335m, $322m, and $175m respectively.
Located off Vietnam’s southwest coast, Block B will be connected via pipelines to provide fuel gas for thermal power facilities in collaboration with Vietnam Oil and Gas Group and Thailand’s PTT Exploration and Production Public Company Limited. JBIC emphasized that these loans support Japanese involvement in resource development while aiding Vietnam’s energy transition efforts.
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Vietnam aims for carbon neutrality by 2050 and has outlined its Power Development Plan 8 (PDP8) to reduce coal reliance, favoring domestic gas and liquefied natural gas during the transition phase.