The Vietnam Oil and Gas Group (PetroVietnam) and the Electricity of Vietnam (EVN) Group have finally reached contracts in regards to products from the three gas-fuelled power plants in the south, ending prolonged negotiations.

Under the deals signed in Hanoi on late December 29, the EVN will pay the PVN some 630 million USD annually for over 11.5 billion kWh of electricity generated by the 450MW Nhon Trach 1 and the Ca Mau 1 and 2 with a combined capacity of 1,500 MW.

EVN President Dao Van Hung said for the 25 year term, the two contracts will cost the EVN up to 15.8 billion USD, which, however, will help bring the two giants closer to each other, thus contributing a boost in power generation and supply.

The deal regarding the Ca Mau plants 1 and 2 was initially reached by the two giants in January 2008. However, it took years to make some adjustments for a final agreement due to the lack of a contract regarding the PVN’s responsibility on operation and maintenance as well as disagreements on prices./.