The Block B – O Mon Gas Pipeline Project, the midstream component of the Block B Gas-to-Power Chain, with a total investment of USD 1.277 billion, is being implemented in a synchronized manner by the Southwest Pipeline Operating Company (SWPOC). In 2024, the leadership team and employees of SWPOC made significant efforts to overcome challenges and fulfill their duties with a strong sense of responsibility. Moving into 2025, SWPOC is committed to accomplishing key tasks and ensuring that project progress remains aligned with the overall Block B Gas-to-Power timeline.
The Block B Gas-to-Power Project Chain is a fully integrated system, transporting gas from the upstream Block B Gas Field Development Project, through the midstream Block B – O Mon Pipeline, to downstream power plants at the O Mon Power Center, with a total planned installed capacity of up to 3,800 MW. With an overall investment of nearly USD 12 billion, this is one of the largest project chains in Vietnam's oil and gas sector.
Following years of thorough preparation and with strong attention and guidance from the State, Government, ministries, and other stakeholders, the Block B Gas-to-Power Project Chain reached its Final Investment Decision (FID) in 2024. This milestone marks a significant advancement in the project’s development. The decision not only demonstrates the deep commitment of the Government but also reflects the strong support from the leadership of Petrovietnam – the National Oil and Gas Group – opening new prospects for the growth of the oil and gas industry.
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| SWPOC was one of six outstanding collectives recognized for leading investment performance in 2024 within Petrovietnam. |
As the midstream component of the Block B Gas-to-Power Project Chain, the Block B – O Mon Gas Pipeline Project, with a total investment of USD 1.277 billion, is being implemented in alignment with the overall chain progress by the Southwest Pipeline Operating Company (SWPOC). In 2024, the Executive Board, along with all officers, engineers, and workers of SWPOC, made dedicated efforts and demonstrated the highest level of responsibility to fulfill their assigned tasks.
Following the Final Investment Decision (FID) for the project chain, on April 26, 2024, the parties to the business cooperation contract for the pipeline project signed a confirmation letter stating that all precedent conditions had been satisfied. Based on this, in May 2024, SWPOC officially instructed the onshore EPC contractor to proceed with the full scope of work under the contract.
By the end of 2024, survey work supporting detailed design had been completed 100%, and detailed engineering was 95% complete. In terms of procurement, two shipments of steel plates—equivalent to two-thirds of the total volume—had been delivered to the factories for pipeline and coating production at PV Pipe and PV Coating. Construction activities also commenced after SWPOC handed over the site for the O Mon gas distribution station in Can Tho to the EPC contractor.
Key project packages were also implemented on schedule. The onshore pipeline route clearance and UXO disposal package reached 100% completion, and the construction insurance package had successfully selected a contractor and signed the contract, ensuring risk mitigation throughout the project implementation phase.
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| SWPOC Leadership Accompanies Japanese Partners on a Site Visit to the O Mon Gas Distribution Center (GDC O Mon) Construction Site. |
Land clearance efforts marked a highlight in 2024. The policy framework was approved by the Prime Minister on June 3, 2024. Measurement and inventory activities in the provinces of Can Tho, Kien Giang, and Ca Mau were completed, ensuring accurate data for the compensation process. Authorities in several localities, including An Bien, An Minh, and Chau Thanh districts of Kien Giang Province, approved compensation, support, and resettlement plans, allowing disbursement to affected households to begin in December 2024. The support and consensus from local authorities not only helped ensure that affected families could stabilize their lives before the 2025 Lunar New Year (Year of the Snake), but also facilitated SWPOC in handing over sites to contractors on schedule.
In 2025, SWPOC aims to implement key tasks to ensure synchronized progress with the Block B Gas-to-Power Project Chain. The onshore EPC package will focus on completing pipe fabrication, coating, and the construction of infrastructure and foundations at stations and pipeline sections. For the offshore PC packages (pipeline construction), after contractor selection is finalized, SWPOC plans to procure steel plates, fabricate and coat the pipes. The company also targets the completion of compensation and clearance for pipeline routes and stations, and the completion of offshore UXO clearance to enable timely handover of the offshore pipeline construction site.
Acknowledging the significant challenges ahead in achieving its 2025 goals—including difficulties in selecting contractors for major packages, the impact of geopolitical instability, global economic volatility, rising land clearance costs, and increasing material prices—SWPOC has developed comprehensive and specific solutions to address these issues proactively.
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| Chairman of the Board of Members of Petrovietnam, Mr. Le Manh Hung, attended and delivered directives at the 2024 Project Implementation Review Conference, the 2025 Work Plan Meeting, and the 2025 Employee Conference of SWPOC. |
Enhancing risk and schedule management has been identified as a top priority. SWPOC will focus on developing a detailed risk management plan, including the identification of potential risks at each stage of the project. At the same time, modern project management tools and software will be applied to closely monitor progress and implement timely adjustments when necessary. In terms of finance, the company will continue to establish an annual project budget that is clear, comprehensive, and aligned with actual execution status, while focusing on cost control to optimize capital management for the project.
Furthermore, coordination and integration among component projects within the Block B Gas-to-Power Chain are considered strategic solutions. As emphasized by Mr. Le Manh Hung, Chairman of Petrovietnam’s Board of Members, at the 2024 Year-End Review Conference, SWPOC and all related units should continue to strengthen interconnectivity and view the entire project chain within the oil and gas ecosystem as a unified system. This approach aims to maximize overall value, ensure effective coordination among parties, and deliver superior economic outcomes.
In this spirit, SWPOC will intensify collaboration and integration between upstream and downstream projects, identifying and jointly addressing interface issues to ensure synchronization and effectiveness across the entire chain.
The Block B – O Mon Gas Pipeline Project is now entering a critical phase, with numerous work items requiring completion in the near future. Despite various challenges, strict adherence to the execution plan and meticulous management at every stage will help SWPOC stay on track and move closer to its goal of completing the project on schedule and meeting the expectations set forth.
