USTDA SUPPORTS GAS PIPELINE DEVELOPMENT IN VIETNAM

HANOI, VIETNAM (August 4, 2004) – Earlier today, the U.S. Trade and Development Agency (USTDA) awarded a $591,000 grant to Vietnam Oil and Gas Corporation (PetroVietnam) to partially fund a feasibility study on a pipeline to supply natural gas from the Gulf of Thailand to the O Mon Power Plant complex in the Mekong Delta region.  The grant was conferred in a signing ceremony held at PetroVietnam offices in Hanoi.  Mr. John S. Boardman, Deputy Chief of Mission at the U.S. Embassy in Hanoi, signed the grant agreement on behalf of the U.S. Government.  Dr. Tran Ngoc Canh, President and CEO, signed on behalf of PetroVietnam.

The Government of Vietnam is seeking to utilize two offshore gas fields in the Gulf of Thailand to provide natural gas to existing and planned power plant facilities in the Mekong Delta region.  In support of this effort, the USTDA grant awarded today will fund a study on two proposed pipeline options and consider future connections for spur pipelines.  Specifically, the feasibility study will analyze technical requirements, gas quality and pipeline access issues, pipeline route selection, environmental and social impacts, unexploded ordnance issues, construction methodology, cost estimates, and the commercial viability of the project.  In coordination with USTDA, Unocal International Corporation of El Segundo, California will provide additional funds towards the completion of the study.  PetroVietnam will select a U.S. firm on a negotiated basis to complete the scope of work for the study.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development.  In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.