By Tran Huu Hiep & staff writers
An artist impression of the Long Phu 2 thermal plant in Soc Trang
Designed to have total capacity of 1,320MW, Long Phu 2 thermal power plant is slated to be operational in 2019. The project is one of the three thermal power plants of the Soc Trang Electricity Center. Long Phu 2 previously belonged to Song Da Corporation. However, this investor had to withdraw due to financial constraints. Meanwhile, the 1,200-MW Long Phu 1 plant invested by Vietnam National Oil and Gas Group will be put into operation next year.
The Long Phu 2 project also marks the comeback of Tata Group to Vietnam after the Indian giant’s US$5-billion steel project in the central province of Ha Tinh had come to a standstill due to site clearance problems.
According to India’s Live Mint, Long Phu 2 will pave the way for Tata’s expansion in Southeast Asia in response to the Indian Government’s Look East policy.
Soc Trang is among the poorest provinces in the Mekong Delta where 17% of the local households are poor, 2.4 times higher than the average of the region. FDI pledged in Soc Trang was only US$35.4 million, also the lowest in the region. In comparison, according to the General Statistics Office, the Mekong Delta has accommodated 838 operational FDI projects with combined capital of US$11.136 billion, making up 4.75% of the country’s total.
When Long Phu 2 is implemented, Soc Trang will improve its FDI attraction ranking in the Mekong Delta, jumping to the third position, behind only Long An and Kien Giang provinces.
Input of coal, output of power
In line with Vietnam’s Power Master Plan VII, there will be 57 coal-fueled thermal power projects with a combined capacity of 36,000MW by 2020 and 75,700MW by 2030, equivalent to 47% and 56% of the country’s total power output respectively.
In the Mekong Delta, aside from the Ca Mau Gas-Power-Fertilizer Complex and the Can Tho Thermal Power Center, thermal power plants such as Duyen Hai 1, 2 and 3 in Tra Vinh; Long Phu 1, 2 and 3 in Soc Trang; Song Hau 1 and 2 in Hau Giang; and Kien Luong in Kien Giang will be put into operation. All these power plants are coal-fueled.
Tata Power Co., an affiliate of Tata Group, will use coal imported from Indonesia or Australia to fuel Long Phu 2 power plant.
According to a master plan for national coal consumption until 2020 with a vision to 2030 approved by the Prime Minister, the domestic demand for coal will skyrocket. The Vietnam National Coal and Mineral Industries Holding Corporation estimates that coal needs for thermal power generation will increase by six million tons in 2015.
From 2016, Vietnam will have to import millions of tons of coal per year. This figure will rise to 20-30 million tons by 2020.
Currently, as no deep-water port capable of receiving big coal transporting vessels is available in the Mekong Delta, transporting coal on smaller ships or barges proves to be a feasible solution. In 2012, the Japan International Cooperation Agency (JICA) came up with a list of eight locations in the Mekong Delta for construction of coal transshipment ports, including those in Soc Trang, Nam Du (Kien Giang), Duyen Hai (Tra Vinh) and Hon Khoai (Ca Mau). At present, only one coal transshipment port is under construction in Tra Vinh, mainly for Duyen Hai 1, 2 and 3 thermal power plants. Therefore, research projects for deep-water ports or coal transshipment ports should be conducted and stable coal supply sources from major exporters such as Australia, Indonesia and Russia should be ensured before these plants are up and running.
During meetings with Soc Trang authorities, Tata Group leaders mentioned its plans to invest in a coal transshipment port around Tran De estuary to supply coal for thermal power plants in the Mekong Delta.
It is worth noting that coal-fueled power generation has certain impact on the environment. The US$2.19-billion thermal power project will benefit Soc Trang. Yet, the provincial authorities should pay close attention to environmental issues when the project is carried out.
Đăng ký: VietNam News
