Abstract
Japan Vietnam Petroleum Company Limited (JVPC), an affiliate of Nippon Oil Exploration Limited, began its operations in Block 15-2 Offshore Vietnam in 1992, with crude oil production starting in the Rang Dong Field in the same block in August 1998. During initial oil production, the Rang Dong Field's associated gas (Rang Dong Associated Gas) was being flared due to economic reason. With environmental concerns in mind, the economic utilization of the Rang Dong Associated Gas had been a long standing issue for JVPC and its partners. In 2001, JVPC began its Rang Dong Gas Utilization Project (Project) under the Clean Development Mechanism (CDM) framework. The Project was led by JVPC and conducted jointly by JVPC, ConocoPhillips, Petrovietnam and Petrovietnam Exploration and Production (CDM Project Participants). The Project activities included the construction of compressor facilities and a 46 km gas pipeline connecting Rang Dong Field to the nearby Bach Ho Field where a gas transportation pipeline had been installed to connect the Bach Ho Field to the onshore gas processing plant at Dinh Co (GPP). Thereafter, Rang Dong Associated Gas could be sent to GPP via Bach Ho Field for effective utilization. Rang Dong Associated Gas is processed into dry gas, LPG and condensate at GPP and is supplied to the power plants, or to the local market for cooking fuel, and is also used for producing gasoline. As a direct result of this project, there has been a significant reduction in CO2 emissions through the elimination of gas flaring offshore and the changes in energy sources onshore. On the 4th February, 2006 this Project was registered as a CDM project with an estimated reduction in Green House Gases (GHG) emissions of about 6.8 million tons of CO2 (equivalent) for the 10-year Project credit period from 2001 to 2011. This paper outlines the Rang Dong Gas Utilization Project under the Clean Development Mechanism and outlines the challenges experienced by JVPC during the preparation and implementation of the Project.
