VietNamNet Bridge – Importing coal is clearly a must for Vietnam but the country is still unclear about the best way to do it.

A report showed that by 2020, Vietnam will need 70 million tons of coal a year to run thermal power plants.

The Ministry of Industry and Trade has been requested to import 40-50 million tons by 2020, of which 20 million tons would be imported in 2015-2016, when power generation units in the south become operational.

Tran Viet Ngai, chair of the Vietnam Energy Association, said that importing coal is a must for Vietnam to serve the economic development. The Duyen Hai thermal power plant alone, which has the capacity of 3,000 MW, consumes 5-6 million tons of coal a year.

There is another reason behind the decision to import coal now. “We think the output should be kept at 40 million tons a year. If so, the coal reserves could be enough for dozens of years more,” Ngai said.

In fact, also according to Ngai, it is still unclear about the exact coal reserves and the coal quality of the Red River basin.

“We have suggested opening a coal mine in Thai Binh province to find out if there is coal there, what kind of coal and at what depth it is – information needed to plan the way to exploit and which technology to use,” he said.

Asked how to calculate how much coal to import, an official of the Ministry of Industry and Trade (MOIT) said when the total coal-run thermopower capacity increases to 75,000 MW by 2030, they will need 171 million tons of coal.

Not easy to import coal

Ngai said there are many coal supply sources in the world, including Australia, Indonesia, India, China and Japan. However, it would not be easy to do.

There are many things Vietnam needs to do when planning imports. First, it has to find sources which can supply products suitable to run power plants in the south.

Second, it needs to find how much it would import and how much the partners can supply.

Third, it needs to find out if the partners can provide coal quarterly and annually, and ensure supply for the whole life of projects.

“Vietnam has not found any country which has committed to provide coal to Vietnam for many months and the whole life of projects,” Ngai said.

Vietnam can choose either to buy foreign coal mines to exploit and carry to Vietnam, or import coal as demanded.

However, also according to Ngai, Vietnam has not found any coal mine to buy in the last five years.

Dat Viet