Vietnam Raises Natural Gas Prices of Biggest Oilfield
The Ministry of Finance has recently decided to raise natural gas prices from the country’s biggest oilfield Bach Ho, to US$12 U.S. cents per cubic meters from two cents in 2006, Liberated Saigon newspaper reported October 19.
The newly-set price will be imposed on gas purchases by the sole buyer PetroVietnam Gas Corp (PV Gas), the gas subsidiary of state-owned oil monopoly PetroVietnam group, from January 2007, the mouthpiece said.
The ministry did not give any reasons for the sharp hike but PetroVietnam officials have said the move was part of the government's efforts to cut subsidies on gas sales.
PV Gas was asked to contribute a supplement to the State budget in the wake of the new price.
The Bach Ho field is Vietnam’s main oil producing field, accounting for 60 per cent of the country’s crude oil exports. It can produce 4.6 million cubic meters of gas a day.
The Bach Ho-related project is operational and can supply l.5 billion cubic meters of dried gas, 350,000 tons of LPG and 130,000 tons of condensate, a material for processing gasoline each year.
PetroVietnam produced 5.44 billion cubic meters of natural gas in the first nine months, up nine percent on year. (Liberated Saigon)
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