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Nov 29, 2019 / 05:53

Thailand's EGATi kicks off US$2.4 billion coal-fired power project in Vietnam

The power plant is expected to become operational in July 2023, using up to 3.6 million tons of coal per year.

Thailand’s EGAT International Co., Ltd (EGATi) last week kicked off construction of a thermal power plant in Vietnam which costs VND55 trillion (US$2.37 billion), local media reported.

Construciton of Quang Tri 1 Thermal Power Plant kicked off. Photo: Baoquangtri

EGATi, a wholly owned subsidiary of the Electricity Generating Authority of Thailand (EGAT), will build the 1,320-megawatt Quang Tri 1 Thermal Power Plant in the form of build-operate-transfer (BOT) for a 25-year period.

Located in the central province of Quang Tri, the plant would use imported coal which is likely to reach a maximum of 3.6 million tons per year.

The first generator is scheduled for commercial operation in July 2023 and the second one in January 2024, according to EGATi.

 Investors of Quang Tri 1 Thermal Power Project. Photo: EGATi

The two-turbine plant will be jointly developed by three investors namely EGATi, Thailand’s Electricity Generating Public Co., Ltd (EGCO), and Japan’s Kyushu Electric Power Co, Inc. (Kyushu) under the Joint Development Agreement (JDA) signed in 2016.

In August 2011, EGATi expressed interest in investing in Quang Tri 1 Thermal Power project which has been included in Vietnam’s Power Development Plan VII (by 2020 and vision to 2030).

Two years later, the government of Vietnam approved EGATi as an investor for the project.

 Vietnam's imported coal in 2014-10/2019. Data: Vietnam Customs. Chart: Linh Pham

Vietnam, one of Asia’s fastest growing economies, has become more reliant on coal for electricity production though it has promoted renewable energy.

The imported volume hit 36.8 million tons in the first 10 months of 2019 from 23.78 million tons in 2018, statistics by the General Department of Vietnam Customs showed.

Vietnam’s coal suppliers include Indonesia, Australia, China, and Russia.