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COAL

New Vietnam law could

delay existing coal
development

A new law in Vietnam could delay four major
coal-fired power projects worth a combined
$9.1 billion, a US-based think tank said,
Reuters reported.
GAS-FIRED GENERATION COAL-FIRED GENERATION The Institute for Energy Economics and
Financial Analysis (IEEFA) said Vietnam’s
Pakistan LNG signs initial GE Power India set to revised law on public-private partnerships
could affect the Nam Dinh 1, Vung Ang 2,
deal to sell LNG to Karachi supply NOx reduction Vinh Tan 3 and Song Hau 2, coal projects,
which each have a capacity of 1.2 to 2.0GW.
Electric system to NTPC’s Barauni provisions for sovereign guarantees,
The new law, IEEFA said, lacks clear
SLAMABAD: Pakistan LNG Ltd (PLL), a thermal power plant introduces more rigid requirements for
state-run gas importer said on Thursday it contracts and makes Vietnamese law
has signed an initial deal to supply liquefied GE Power India on Monday said it has mandatory as the governing law, all of which
natural gas (LNG) to private utility Karachi received a letter of award to supply NOx could create hurdles for foreign lenders and
Electric’s plants from 2021, helping the reduction system worth Rs 12.78 crore to investors.
country cut its carbon emissions. NTPC’s Barauni thermal power plant. The The law, which comes into effect from
Pakistan has increased its reliance on project will help the power plant comply with January next year, will put particular pressure
imported LNG over the last few years as its the government’s initiative to reduce emission on Japanese and South Korean investors
local gas output has declined while domestic levels for improvement in overall quality of who are already pushing hard to close deals,
demand, led by power sector, has increased. air, it added. as their governments and global financial
PLL recently invited bids to import up to six “GE Power India Ltd (GEPIL) has received institutions signal an accelerated exit from
LNG cargoes for December. a ‘Notice of Award’ to supply a DeNOx system fossil fuel investments, the report said.
PLL will supply up to 150 million cubic feet to NTPC Limited for their Barauni Thermal Last month, investors wrote to sponsors
per day (mmcfd) of gas to Karachi Electric’s Power Plant (2X250 MW) in Bihar,” the and financiers to urge them to withdraw from
900-megawatt project which will have two company said in a statement. the Vung Ang 2 coal power station project,
units, it said in a post on Twitter. The project has an order value of Rs 12.78 which they said was incompatible with Paris
Unit 1 and Unit 2 are expected to crore, it added. agreement goals.
commissioned in March 2021 and November GEPIL will set up the combustion IEEFA said coal-fired power projects
2021, respectively, it said. modification technology for all the steam in Vietnam also face competition from a
The heads of agreement will be followed generators in Barauni stage-II, Unit 8 and 9 to plethora of newly announced domestic
by a gas supply agreement in December or meet the NOx emission limit of 450 mg/NM3 liquefied natural gas (LNG) and renewable
January, said a source at PLL. to comply with the Indian environmental projects.
The power sector accounts for about 38% requirements. Nguyen Thanh Son, a Hanoi-based
of gas consumption in Pakistan, according to Supporting the ‘AatmaNirbhar Bharat’ energy expert, said that although Vietnam
a report by Oil and Gas Regulatory Authority initiative of the government, all the has indicated it will move away from coal,
in August. major components for the project will be demand was unlikely to subside soon.
In the last fiscal year to June 2019, local manufactured in India, it added. “For Vietnam, coal will be here to stay at
gas supplies lagged demand by 1,440 mmcfd GE’s Durgapur facility in West Bengal least until the year 2100,” Son said. “Coal is the
and the gap is likely to widen to 3,684 mmcfd will supply the pressure parts and other cheapest energy source for the country.”
by 2024/25 and 5,389 mmcfd by 2029/30, the components will also be procured locally from Vietnam’s industry ministry had no
report said. various sub vendors. immediate response to a request for comment
Pakistan’s cabinet last year approved five “We are truly delighted to have received on the report. The government supports the
consortiums to progress with LNG terminal this prestigious order from NTPC which PPP law as a means of boosting infrastructure
plans. reflects GE’s commitment to help the country amid state budget constraints.
Pakistan has a 15-year LNG purchase address the critical issue of emission from coal
deal with Qatar to annually buy 3.75 million power plants.
tonnes of LNG for 15 years to 2030, but it “This win also supports GEPIL’s strategy Indonesian coal exporters
regularly taps the spot market. It also has a to continue to deliver aligned with the local
five-year import deal with commodity trader market demand and the national interests don’t expect ‘real recovery’
Gunvor and a 15-year agreement with Eni. of the country,” GEPIL Managing Director
Prashant Jain said. until H2 next year

P10 www. NEWSBASE .com Week 44 04•November•2020