Ministry of Industry and Trade removes difficulties of Phu My Power Plant in using LNG fuel

The task force of the Ministry of Industry and Trade and Vietnam Electricity Corporation led by the Deputy Minister of Industry and Trade - Hoang Quoc Vuong and the Deputy Director of National Steering Committee on Electricity Development had just a working session with the Power Generation Joint Stock Corporation 3 (EVNGENCO 3) regarding to the implementation of solutions to ensure the power supply in the dry season in 2020 and plan for 2021. The task force has highly appreciated efforts of EVNGENCO 3, despite the difficult conditions; EVNGENCO still provides sufficient electricity to meet use demands of people. The Deputy Minister also affirmed to assist EVNGENCO 3 in removing difficulties of Phu My Thermal Power Plants in using LNG fuel.

Working session of the Deputy Minister of Industry and Trade at EVNGENCO 3
According to reports, Thermal Power Plants (TPPs) managed by the Power Generation Joint Stock Corporation 3 currently have the gross installed capacity of 5,874 MW. In the first 5 months of 2020, the peak energy is estimated at 13,369 billion kWh, equivalent to 40.99% of the annual planning. Thanks to preparation and implementation of plans in accordance with the actual situations, EVNGENCO 3 has secured the electricity supply for the dry season 2020 and continued to perform solutions to ensure the electricity supply for year 2021. At the same time, coal supply plans for power plants of EVNGENCO 3 in 2020 and the following years have been proactively sought by the Corporation to satisfy the electricity production needs.

The Deputy Minister of Industry and Trade - Hoang Quoc Vuong is discussing major issues on the electricity production of EVNGENCO 3
Regarding to the operation preparation of Phu My Thermal Power Plant using LNG fuel, the Vietnam Electricity Corporation has issued bidding documents for the bid package named “Additional purchase of import gases for electricity production operations of Phu My Power Plants”; surveying and preparing LNG connection plans for Phu My 2.1 MR. However, currently there is no guidance on the mechanism of electricity market participation, payment and operation for LNG-using power plants, in which in terms of specific characteristics under LNG-fuel sales contracts, the buyer must guarantee all its obligations with annual commitment volumes. EVNGENCO 3 has petitioned and the Ministry of Industry and Trade has directed PVN/PVGas to ensure a stable gas supply source,  assure the operation schedule Sao Vang and Dai Nguyet gas field. In addition, it also allows the price transfer of LNG fuel and LNG consumption obligations from gas sale contracts to electricity sale contracts.

Phu My Power Complex

Speaking at the Conference, the Deputy Minister of Industry and Trade - Hoang Quoc Vuong has highly appreciated all efforts of EVN and EVNGENCO 3 in the electricity supply to people in such difficult conditions. The Deputy Minister has also directed that EVN, EVNGENCO 3 should promote the highest working spirit, especially the coal supply for power plants. Accordingly, it is necessary to direct strictly in the performance of long-term coal sale contracts signed with TKV (Vietnam National Coal & Mineral Industries Holding Corporation Limited), the parties are required to be responsible and share with each other for long-term contracts. Especially for the import of LNG to operate power plants, in essence  gas like coal, if the plant does not have sufficient fuel, it may use LNG fuel and the Ministry of Industry and Trade agreed with the Corporation’s bidding plan of LNG fuel purchase that is proposed in the working session. However, the bidding and purchase of this fuel at an appropriate price need to be calculated carefully. The Deputy Minister said “We are currently facing the electricity shortage, but we will not let it happen in this year and at least for the next year. The coordination between corporations and enterprises to share difficulties and resolve conflicts is very essential. They can report difficulties to the Ministry for joint settlement”.
Also at the meeting, EVNGENCO 3 has submitted to the Ministry of Industry and Trade on the pilot development of the Floating Solar Power Project on hydroelectric reservoirs in combination with operation modes of Buon Kuop Hydroelectric Plant and Srepok 3 Hydroelectric Plant.
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