Exporting clean electricity: A long journey.

Based on SCU's proposal, this imported power will be sourced from offshore wind energy, developed in collaboration with PetroVietnam Technical Services Corporation (PTSC), and transmitted from Vietnam to Singapore via new submarine cables spanning approximately 1,000 km.

Construction of offshore wind turbine foundations at PTSC Vung Tau port.

In Vietnam, after being granted permission by the Ministry of Natural Resources and Environment to fully implement activities for monitoring, investigating, surveying, and assessing marine resources in August 2023, 2024 was the year PTSC conducted offshore surveys to support the development of an offshore wind power project aimed at producing and exporting clean electricity to Singapore.

In March 2024, PTSC welcomed a delegation from the Singaporean government to visit its facilities and work on the project. During this visit, Singaporean government officials witnessed firsthand the integrated infrastructure, state-of-the-art equipment, and facilities that PTSC has newly invested in to serve offshore renewable energy projects worldwide , including this transnational project.

Through this meeting, Singaporean government officials affirmed their continued support for PTSC and its partners in the project's implementation. This will not only help Singapore achieve its goal of net-zero emissions by 2050 but also further strengthen bilateral cooperation between Singapore and Vietnam, realizing the digital and green economy partnership between the two countries.

This further strengthens the confidence of Singaporean government authorities in selecting Vietnam as the final country to import approximately 4 GW of clean electricity to Singapore from 2030, with PTSC acting as a co-investor and developer of the project.

On the part of PTSC and SCU, after receiving survey permits and conditional approval from the relevant authorities of both countries at the end of 2023 to import clean electricity from Vietnam to Singapore, related work is also being accelerated to successfully implement the Project.

The road ahead is long.

Mr. Le Manh Hung, Chairman of the Board of Directors of Vietnam Oil and Gas Group (Petrovietnam), said that offshore wind power is a key focus in the Group's strategic shift. Petrovietnam is building a portfolio of offshore wind power projects, reporting to competent authorities; implementing human resource training; cooperating with major corporations worldwide; and directly investing in and participating in the global supply chain for offshore wind power, aiming for self-reliance in offshore wind power development.

Prior to undertaking the wind farm project aimed at exporting electricity to Singapore, PTSC had been the only Vietnamese enterprise to win international contracts for the construction of offshore wind farm foundations and wind power substations for foreign investors. To date, many foundations and mechanical components manufactured by PTSC have been exported to Taiwan (China) and Nordic countries.

According to Mr. Le Manh Cuong, General Director of PTSC, PTSC has over 30 years of experience providing technical services for major domestic and international oil and gas projects. In the field of oil and gas engineering, PTSC has successfully completed over 100 projects both domestically and internationally. Notably, the international projects PTSC has won are those with stringent technical and deadline requirements.

Having become familiar with PTSC's brand through its oil and gas engineering projects, foreign investors in offshore wind power projects have repeatedly visited and inspected PTSC's capabilities, concluding that, "PTSC is fully capable of providing substation and foundation fabrication services for offshore wind power projects."

Speaking with a reporter from Investment Newspaper, Mr. Le Manh Cuong said that the Ba Ria - Vung Tau offshore wind farm project, with a capacity of 2.3 GW and an efficiency of approximately 46%, will generate 1.2 GW of clean electricity, along with an underwater cable of over 1,000 km leading to Singapore, with a total investment of no less than 10 billion USD.

Despite its significant offshore wind power potential, Vietnam has not been able to fully utilize this energy source due to a lack of a legal framework. The Ministry of Industry and Trade recently proposed a pilot study on the development of offshore wind power to meet domestic electricity needs. However, projects aimed at electricity export have not been mentioned. Even for the development of offshore wind power for domestic consumption, the Ministry of Industry and Trade has listed numerous issues requiring consultation and policy development.

Therefore, Mr. Le Manh Cuong proposed that, while a stable and long-term policy mechanism has not yet been developed and perfected, the Government should issue documents, mechanisms, and projects allowing Petrovietnam, PTSC, and other enterprises with sufficient capacity and conditions to implement a number of offshore wind power projects under pilot mechanisms and specific policies to leverage domestic resources. Priority should be given to domestic enterprises and state-owned corporations and conglomerates participating in this field.