Perenco has signed a gas sales and purchase agreement (GSPA) for the Su Tu Trang Phase 2B development in Block 15-1 offshore Vietnam, marking a key commercial milestone for a project aimed at boosting domestic gas supplies and supporting the country's energy security.
The Su Tu Trang Phase 2B project is expected to supply more than 600 billion cubic feet (Bcf) of gas over its lifetime and produce up to 150 million standard cubic feet of gas per day (MMscfd) at peak output, Perenco said.
The development includes brownfield modifications to existing facilities, the installation of a new Central Gas Facility platform and the drilling of up to 15 gas wells.
First gas is expected in June 2027, with plateau production targeted for June 2028, according to the company.
The agreement represents another milestone in the development of Block 15-1 following the renewal of the production sharing contract in 2025, which extended the partnership between Perenco, state-owned Petrovietnam and PetroVietnam Exploration Production Corporation (PVEP) by an additional 25 years.
The project comes as Vietnam seeks to bolster domestic gas production to meet rising electricity demand and support industrial growth in the country's southeast, one of its main manufacturing and economic hubs.
Block 15-1 is Vietnam's second-largest oil and gas block and hosts several producing fields, including the Su Tu Den, Su Tu Vang and Su Tu Trang developments.
Perenco has operated in Vietnam since 2012 and also holds an interest in the Nam Con Son pipeline system, a key piece of infrastructure transporting offshore gas to consumers in southern Vietnam.
The latest development is expected to help offset declining production from mature fields and support Vietnam's efforts to strengthen energy security by maximizing domestic hydrocarbon resources.