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AfrElec                                     NEWS IN BRIEF                                            AfrElec








                                                                                competitively to Singapore, but is also a bold
                                                                                step towards energy transition.
                                                                                  Pavilion Energy is currently one of two
                                                                                LNG term importers in Singapore, alongside
                                                                                oil giant Shell.
                                                                                  “This partnership will strengthen our core
                                                                                Singapore market and our role as a global
                                                                                energy trader,” Marican said.




                                                                                COAL
                                                                                Vietnam’s thermal coal

                                                                                imports seen resilient

                                           Singapore’s Pavilion Energy          are optimistic the country’s fossil fuel
       GAS-FIRED GENERATION                                                     Vietnam’s seaborne thermal coal traders
       GE wins gas turbine supply  signs LNG deal with Qatar                    consumption will continue to rise through
                                                                                2021 amid burgeoning demand for electricity
       order from Guangdong                Petroleum                            production at the lowest cost, despite the
                                                                                funding and regulatory challenges that loom
       Energy Group                        Singapore is continuing its push towards   for new coal-fired power plants, market
                                           cleaner and more sustainable energy sources,
                                                                                sources said Nov. 6.
       GE has secured a gas turbine supply contract   with Temasek-owned Pavilion Energy signing   A new law on public-private partnerships
       from state-owned power utility firm   a 10-year sale and purchase agreement with   that comes into effect in 2021 creates new
       Guangdong Energy Group for the Dongguan   the world’s largest liquefied natural gas (LNG)   hurdles for foreign coal investors that fail to
       Ningzhou combined-cycle power plant in   producer Qatar Petroleum on Monday.  conclude build-operate-transfer contracts
       China’s Greater Bay Area.              The agreement will see Qatar Petroleum   and government guarantee and undertaking
         According to the contract, GE will supply   supply up to 1.8mn tonnes of LNG per year   agreements before the end of 2020, according
       three of its 9HA.02 heavy-duty gas turbines   to Singapore from 2023, the Straits Times   to analyst Thu Vu from the Institute for
       for the power plant in Guangdong province.  reported                     Energy Economics and Financial Analysis, or
         GE Gas Power China president Yang Dan   Each LNG cargo delivered under this   IEEFA.
       said: “The Dongguan Ningzhou power plant   agreement will be accompanied by a statement   Four of the 15 coal power projects
       is expected to become one of the largest   of the associated greenhouse gas emissions   currently in the pipeline in Vietnam — Nam
       gas plants in mainland China and plays a   with the shipment.            Dinh 1, Vung Ang 2, Vinh Tan 3 and Song
       significant role in promoting the world’s   This partnership not only bolsters   Hau 2 — have yet to reach the commissioning
       lower-carbon and sustainable development.  Singapore’s LNG supply, but also contributes   phase, and with their contractual agreements
         “GE’s H-Class Combined Cycle Power   to the development of more sustainable   still pending official sign-off, they could be
       Plant has unmatched efficiency available at   natural gas strategies.    at risk of being called off due to the new law,
       >64% net combined cycle efficiency, higher   Global demand for LNG has accelerated   according to Vu.
       than any other OEM or competing technology  in recent years, with natural gas viewed as   However, a trader in Indonesia said
       today.                              the cleanest form of fossil fuel for energy   that while Vietnam’s coal-fired power plant
         “In addition, our HA turbines being fuel   production. In 2018, Singapore’s natural gas   projects may be delayed by the new law, they
       flexible, have the capability to transition from   consumption was about the equivalent of   would eventually take off.
       gas to hydrogen, paving the way to a more   ninemn tonnes of LNG a year.   “Developing countries that are growing at
       decarbonised world.”                   Singapore’s LNG terminal, which has four   a fast pace will need cheaper power, which can
         Upon the installation of the new gas   tanks, has regasification capacity of about   only be obtained from thermal coal today,” he
       turbines, the Dongguan Ningzhou power   11mn tonnes per annum.           said. “Restrictions on funding and timelines
       plant will add 2.4GW of electricity, which   The agreement between Pavilion Energy   might also be eased if power prices are
       will be sufficient to power more than fourmn   and Qatar Petroleum is the result of a tender   anticipated to tick higher,” he added.
       homes in China.                     launched by Pavilion Energy earlier this year,   A coal producer in Indonesia noted that it
         It is also set to become one of the largest   seeking not just LNG supply but also ideas   was already not easy to conclude thermal coal
       gas power plants in the country’s mainland   for the reduction of greenhouse gas emissions   trades to Vietnam unless it involved a strategic
       region.                             as well as quantification and reporting   project with government involvement.
         The new gas turbines will also help   methodology for LNG through its journey   “The rate of the growth in coal
       Guangdong province to support national goals  from the well to discharge port.  consumption may slow down in Vietnam, but
       to transition from coal to natural gas.  The company’s chairman Mohd Hassan   the overall volume will not dip,” he said.
                                           Marican said that the agreement with   Southeast Asia’s thermal coal imports are
                                           Qatar Petroleum not only represents the   expected to rise 29% to 128mn mt in 2020
                                           company’s ability to supply LNG reliably and   from realised imports of 99mn mt in 2019,



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