Petrovietnam to import Australian coal

Will import some three million metric tons of thermal coal annually.

PV Power Coal, a unit of state oil and energy firm Petrovietnam, has signed a framework pact with Australia’s Ensham Resources Pty. Ltd., to import around 3 million metric tons of thermal coal annually.

Petrovietnam will use the coal to power two large coal-fired power plants under construction in southern Vietnam. The two 1,200 megawatt plants each will burn 3.2 million tons of coal a year and are scheduled to start power generation in 2015 and 2016.

Vietnam is importing import coal from Australia to help it meet its rapidly growing energy needs driven by high economic growth.

Vietnam was once a major coal exporter. It has, however, seen a sharp drop in foreign sales as supplies are being used domestically. Vietnam’s coal exports peaked in 2009 at just over 25 million tons and
have fallen sharply since.

Vinacomin, the country’s sole coal producer, said in March it will cut annual coal exports to between 4 million and 5 million metric tons by 2015 from 14.5 million tons last year to save the fuel for local power plants. It expects to mine 43 million tons of coal this year.

Vietnam’s electricity demand is expected to rise by 14% a year from 2011 to 2015 and by 11% a year from 2016 to 2020.