State giant PetroVietnam began work Sunday on a US$12 billion project to drill for gas and build infrastructure to supply the gas to several power plants in the Mekong Delta.
More than half of the amount will be spent developing a gas field around 300 kilometers off Phu Quoc Island that has estimated reserves of 107 billion cubic meters of gas and 12.65 million barrels of condensate.
A system of pipelines will be laid to deliver 5.06 billion cubic meters of gas a year to five power plants that will produce 3,660 MW in Kien Giang Province and Can Tho city.
The project, partly funded by foreign investors, is slated to go on stream in the second quarter of 2020.
Under a national power plan approved by the government last month, Vietnam's electricity supply, including imports, will hit 330-362 billion kWh in 2020, an increase of at least 70 percent from estimates made at the end of last year.