Vietnam pursues coal projects
Coal-fired generation in Vietnam will play a significant role under the national power master plan approved by the prime minister last year. The plan envisages that Vietnam will need up to 180,000 megawatt (MW) of capacity by 2025. Within this total, coal-fired plant is forecast to reach more than 116,000 MW in 2025, accounting for more than two-thirds of the total capacity planned for construction between 2006 and 2025. Petrovietnam Power, a wholly owned subsidiary of the state-owned energy company Petrovietnam has entered into the development of a 1,200-MW coal-fired plant worth 21.7 trillion dong (US$1.3 billion). The project that will supply power to the grid serving Thai Binh province and the neighboring Red River delta provinces of Nam Dinh and Hung Yen is scheduled to start commercial operations in 2013 or 2014. Three coal mining projects entered into by state-owned Vietnam National Coal and Mineral Industries Group (Vinacomin) through separate joint ventures (JVs) also in the Red River delta basin are scheduled to commence operation from 2012 at an estimated total cost of about US$1 billion, and will supply coal to power generation plants and other facilities. These projects are: the Khoai Chau-I mine project in Hung Yen province with Japans Marubeni Corporation in early 2008; five million metric tons per year (mtpy) coal mining complex in the Binh Minh district with China Machinery Import & Export Corporation (CMC); and exploration, development and production of a three million mtpy of coal at a second mining complex in Khoai Chau district with U.S.-based Bantry Bay Ventures-Asia LLC (BBV). Vinacomin also plans to build 3,600 MW of minemouth generating capacity as well as a coal gasification plant, a liquefied natural gas terminal, and a coal-to-liquids project. It is envisaged that about half of the new coal-fired power plant will be built and financed by the state-owned power holding group Electricity of Vietnam (EVN). The remaining capacity will be developed on a build, own and operate basis by other companies, including local state-owned entities such as Vinacomin as well as foreign investors. (August 28, 2008)
