HCM CITY (Biz Hub) — The first phase of the Nam Con Son 2 Gas Pipeline project to lay 153km of undersea pipes off Ba Ria-Vung Tau Province will begin this quarter, according to an official.

Do Khang Ninh, general director of PetroVietnam Gas Corporation (PV Gas), the investor, told Viet Nam News during the signing of an agreement on Tuesday for a US$280 million bank loan to fund the first phase that it is scheduled to be completed in mid-2015.

It is meant to carry gas to the mainland from the offshore Thien Ung and Dai Hung oilfields.

The gas will be supplied to the south-eastern region.

The phase will cost more than $402 million while the entire project will cost $1.3 billion.

Eleven foreign banks led by Taiwan's Cathay United Bank will provide the loan.

One of Cathay United Bank's major syndicated loans in Viet Nam in recent years, it is for seven years including a possible two-year extension unlike the five-year norm for foreign loans in Viet Nam and in the region.

The project will see 325km of offshore pipelines laid besides another 30km on shore. — VNS