PetroVietnam has awarded its subsidiary a contract to build a 1,200-megawatt coal-fired thermal power plant in southern Vietnam, which will use coal imported from Indonesia and Australia, a local newspaper said on Wednesday.
The unit, PetroVietnam Technical Services Corp (PTSC), would buy and install equipment, build and test-run the Song Hau 1 Thermal Power Plant in the Mekong Delta province of Hau Giang within 45 months, based on a broad agreement with state oil and gas group PetroVietnam, New Energy newspaper said.
The twin-turbine plant in the Song Hau Power complex would use coal imported from Indonesia and Australia to generate around 7.8 billion kilowatt hour per year, said the newspaper run by the Vietnam Oil and Gas Association.
It gave no projection on the coal import volume or further details of the Song Hau 1 project. The two sides would still need to sign a specific contract following the broad agreement.
The 5,200-megawatt Song Hau Power Complex would have three coal-fired power plants, the report cited a masterplan approved in March 2010 by the Industry and Trade Ministry as saying.
Last December, PTSC also won a PetroVietnam contract to build the $1.2-billion Long Phu 1 coal-fired power plant in southern Soc Trang province.
Coal will take over from hydro power as the leading fuel for new electricity generation in Vietnam, so far a net coal exporter, in the next five years, state utility Vietnam Electricity group has said.
Vietnam will raise its coal export tax to 20 percent next month from 15 percent, as the country moves to save the fossil fuel for domestic consumption while coal production in August would fall from previous months, state-run newspapers reported.