Australia to provide long-term coal to PetroVietnam

Ensham Coal Sales Company of Australia and PetroVietnam’s coal distribution and import company, PV Coal have reached a framework agreement on long-term coal supply for PetroVietnam ’s electric power plants.

According to Vietnam National Oil and Gas Group (PetroVietnam), basing on the framework contract, the two companies will discuss ink separate contracts for coal sales and purchases in the near future.

According to PetroVietnam, Ensham Coal Sales Company owns three mining licences with a 35-year validity period and is permitted to exploit an area of 900 km2 in the state of Queensland , Australia with a total coal reserve of around 1 billion tonnes.

This year, PV Coal is required to sign another framework agreement on long-term coal supply or purchase at least one coal mine from foreign partners, with a minimum stake of 30 per cent.

At present, PetroVietnam is investing in five coal-fired power projects with total output up to 6,000 MW.

Apart from attracting a secure investment for establishing the thermal power plants, PVN is also expected to purchase 18 million tonnes of coal per year (both domestic and imported) to provide fuel for these projects.- VIR

Tags: Ensham Coal Sales, PetroVietnam