A shift to using gas is expected to help an abandoned 1,320-megawatt coal-fired power project in Quang Tri province to fire up again.
EGAT International (EGATi), a wholly-owned subsidiary of the Electricity Generating Authority of Thailand (EGAT), called off its proposed $2.3 billion power project last October because of a lack of funding and Vietnam’s carbon-neutral target by 2050.
Quang Tri’s administration has sent a proposal to the Prime Minister and the Ministry of Industry and Trade saying the province expects the project will still be included in the country’s upcoming power development plan, PDP VIII. Accordingly, natural gas or liquefied natural gas (LNG) could be used instead of coal, and the provincial administration will search for potential investors.
The switch would help Quang Tri work out measures to limit losses for both EGATi and the province, Pham Ngoc Minh, head of the Quang Tri Economic Zone's management board, said Monday.
He added site clearance for the major thermal project has been completed, while a new residential area for those affected has been built.
The resettlement area, which cost VND252 billion ($10.75 million) to develop, covers 50 hectares in Hai Lang district. Putting an end to the project would be a waste, Minh said.
"The province has asked EGATi to send representatives to work directly with us on related issues before we send a notice to the Vietnamese government and the Ministry of Industry and Trade about the abandonment. But the investor has not been able to make arrangements because they need to report to their regulators first."
According to Minh, EGATi is considering an alternative, which is if the Vietnamese government allows gas as a replacement, it may go on with the project. The reason is it is more likely for the Thai company to get access to international capital sources if it is a gas-fired power plant.