The state-owned Electricity of Vietnam Group (EVN) may have to spend as much as VND18 trillion (USD856.7 million) on oil-fuelled power generation next year.

EVN may have to pump huge capital into oil-fuelled power generation next year

According to Deputy Minister of Industry and Trade Tran Quoc Vuong, EVN may fall short of one billion cubic metres of gas for power generation next year as the state-owned Vietnam National Oil and Gas Group (PetroVietnam) may only be able to supply 5.7 billion cubic metres for EVN during the year.

In a bid to help ease EVN’s financial difficulties, the ministry has requested PetroVietnam to try to increase gas production in order to supply from 6.5-6.6 billion cubic metres in 2012 to EVN.

An anonymous PetroVietnam official said EVN preferred gas from the Nam Con Son-Bach Ho fields due to cheaper prices. Even though gas from PM3-Ca Mau is more readily available, gas sales are modest because of higher prices.

EVN is concerned about the possibility of increased losses as a result of their turn to oil-fuelled power generation.

The group’s recent report showed that it had incurred losses of VND6.5 trillion (USD309.3 million) from oil-fuelled power generation last year.