Song Hau Thermal Power Plant

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{{#Badges:CoalSwarm|Navbar-Vietnamcoal}}Sông Hậu thermal power plant is a proposed 3,200-megawatt (MW) coal power plant complex in Hậu Giang province, Vietnam. The project is also referred to as the Hau River power plant.

Location

The map below shows the plant's site, in Hậu Giang Industrial Park, Mái Dầm town, Châu Thành district, Hậu Giang province.[1]

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Background

Sông Hậu-1

In April 2010, Vietnam's state oil and gas group Petrovietnam began initial construction on the $1.5 billion, two-unit, 1,200-MW Sông Hậu-1 power station.[2] In February 2011, the Japan International Cooperation Agency signed an agreement with Vietnam's Ministry of Industry & Trade to extend financing to the project.[3]

In September 2014, with the project having been stalled for several years, Vietnam Minister of Industry & Trade pushed the plant's developer and contractor to get to work. By his schedule, construction would break ground in December 2014, with completion of the first unit in late 2017 and the second in early 2018.[4][5]

In April 2015, after long delays, Petrovietnam signed on Vietnamese company Lilama Corporation as the plant's engineering, procurement, & construction (EPC) contractor. According to the contract, Unit 1 would be completed in Q2 2019, and Unit 2 in Q4 2019.[6] Construction began in May 2015.[7] As of May 2017, construction was on track for 2019 completion.[8]

In early 2017, there were a number of news articles suggesting that the bidding process for various components of the plant (especially the flue-gas desulphurization system) were flawed, resulting in cheap and potentially faulty components being used.[9][10]

In November 2018 the plant's high and intermediate pressure turbines were installed and construction was expected to be complete by 2020.[11] As of January 2019 construction was 70% complete.[12]

In June 2019 the completion date for Sông Hậu-1 was delayed to 2021 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7).[13]

Sông Hậu-2

In April 2011, Toyo Ink Group Berhad, the Malaysian branch of Japan's Toyo Ink Group, announced that it would be pursuing the development of the two-unit, $3.5 billion, 2,000-MW Sông Hậu-2 plant, after provincial authorities approved the company's proposal.[14] In January 2012, Toyo Ink signed a consultancy agreement with Vietnam's Power Engineering and Consulting Joint Stock Company 2 for the construction of the plant.[15]

In August 2013, Toyo Ink signed a memorandum of understanding with the Ministry of Industry & Trade for construction of the plant. The plan calls for the first unit to come online in 2021, and the second in 2022. The Ministry stated that it would sign a build, operate, & transfer (BOT) agreement with Toyo Ink as soon as the latter lined up coal suppliers and electricity sales agreements; Toyo Ink stated that it expected the BOT agreement to be finalized in 2014. Coal would be imported from Indonesia or Australia. Industry experts apparently believed that negotiating the power price with Electricity of Vietnam would take time, and would potentially lengthen this time frame.[16]

As of mid-2015, the BOT agreement had apparently not yet been finalized. In July 2015, Toyo Ink sought shareholders' permission to spend an additional $35 million on consultancy costs for Sông Hậu-2.[17] In October 2016, provincial officials noted that site clearance was behind schedule, and called on district officials to strengthen the procedures for resettling people living on the site.[18]

In January 2017, Toyo Ink signed a land lease agreement with the Vietnamese authorities for the plot on which the power plant will be located. The project had an estimated project cost of US$3.45 billion, and Toyo Ink said it was looking at jointly developing the project via a special purpose vehicle (SPV) with a partner, but will retain a 40% equity interest to remain the single largest shareholder of the project. The SPV will fund about 25% of the total cost, while the remaining 75% will be financed via bank borrowings.[19]

In February 2017 Vietnam’s Ministry of Natural Resources and Environment approved Toyo Ink’s environmental impact assessment for the Song Hau 2 coal plant.[20]

In a visit to the area in March 2017, Vietnam's Deputy Prime Minister called for accelerated price negotiations to help speed up the project.[21]

As of late November 2017, the BOT contract had not yet been signed, and the EIA was being revised.[22]

In September 2018 Toyo Ink estimated that the plant would be commissioned by 2025.[23] In June 2019 the completion date for Sông Hậu-2 was listed as 2024 in the Ministry Of Industry And Trade's report on the implementation of the revised seventh Power Development Plan (PDP7).[24]

Sông Hậu-3

The proposed 2,000-MW Sông Hậu-3 apparently does not yet have a developer. In October 2013, Samsung expressed interest in the project, among others in Vietnam.[25] In 2014, Korea Electric Power Corporation (KEPCO) expressed interest in the project, and began studying its feasibility in May.[26][27]

Revised Power Development Plan VII

According to PDP7, Phase I is in construction with completion scheduled for 2019, Phase II is scheduled for completion in 2021 and 2022, and Phase III is cancelled.[28]

Project Details

  • Sponsor: Petrovietnam (Sông Hậu-1); Toyo Ink Group Berhad (Sông Hậu-2); none (Sông Hậu-3)
  • Parent company: Petrovietnam (Sông Hậu-1); Toyo Ink Group (Sông Hậu-2)
  • Location: Hậu Giang Industrial Park, Châu Thành district, Hậu Giang province, Vietnam
  • Coordinates: 9.95266, 105.86071 (exact)
  • Status: Sông Hậu-1: Construction; Sông Hậu-2: Permitted (EIA approved, funding still being pursued); Sông Hậu-3: Cancelled
  • Gross Capacity: Sông Hậu-1: 2 x 600 MW; Sông Hậu-2: 2 x 1,000 MW; Sông Hậu-3: 2 x1,000 MW)
  • Type: Supercritical
  • Projected in service: 2021 (Sông Hậu-1); 2024 (Sông Hậu-2)
  • Coal Type:
  • Coal Source: Indonesia, Australia (Sông Hậu-1 and 2)[29][30]
  • Source of financing: Japan International Cooperation Agency (Sông Hậu-1)

Articles and resources

References

  1. Trung Tâm Điện Lực Sông Hậu, Wikimapia, accessed Mar. 2015.
  2. Starting to Build Infrastructure of Song Hau 1 Power Center in the End of April 2010, CTTE Corp. website, April 16, 2010.
  3. "JICA To Drive Forward $1.5bn Power Project", Business Times, Feb. 15, 2011.
  4. Ministry of Industry and Trade works at Song Hau Power Project, Petrovietnam press release, 12 Sept. 2014.
  5. New 2000 MW Coal-Fired Power Plant to be Developed in Vietnam, Energy Global, Feb. 8, 2013.
  6. Signing EPC Contract of Song Hau 1 thermal power plant, Vietnam Energy, 13 Apr. 2015.
  7. Prime Minister Nguyen Tan Dzung issues order for construction start of Song Hau 1 Thermal Power Plant, Petrovietnam press release, 19 May 2015.
  8. Dự án nhiệt điện Sông Hậu 1: Lắp đặt thành công dầm chính lò hơi tổ máy số 2, Lilama website, 3 May 2017.
  9. [dien-song-hau-1-pvn-can-minh-bach-trong-qua-trinh-xet-thau/c/21337892.epi Nhà máy nhiệt điện Sông Hậu 1: PVN cần minh bạch trong quá trình xét thầu!], Bao Moi, 16 Jan. 2017.
  10. Vụ nhà máy Nhiệt điện sông Hậu 1: Cần tránh'vết xe đổ' của các dự án lỗ nghìn tỷ, Bao Moi, 3 Apr. 2017.
  11. Turbines installed at Song Hau 1 thermal power project, Vietnam+, Nov. 13, 2018
  12. PMU of Song Hau 1 Joint Stock Company 1: Complete the key plans for 2018, Petro Times, Jan. 4, 2019
  13. Implementation of Power Projects iIn the Revised Power Development Plan 7, Ministry of Industry and Trade, Republic of Vietnam, Jun. 4, 2019
  14. Toyo Ink Group Berhad Update on Progress of the Proposed Investment Project of Building a Coal-Fired Thermo Power Plant in Vietnam, Toyo Ink Group Berhad press release, Apr. 29, 2011.
  15. Contract for New Vietnam Thermal-Power Plant Signed, talkvietnam, Jan. 12, 2012.
  16. BOT power plant agreed, Vietnam Investment Review, 5 Aug. 2013.
  17. Toyo Ink expects to pay US$35mil for consultancy services, Malaysia Star, 9 July 2015.
  18. Dự án BOT Nhà máy nhiệt điện Sông Hậu 2: Điều chỉnh mốc thời gian thực hiện giải phóng mặt bằng, Bao Hau Giang, 26 Oct. 2016.
  19. "Toyo Ink’s hunt for partners in power venture at tail end," The Edge Markets, September 11, 2017
  20. "Song Hau 2 coal-fired environmental impact approved," IJ Global, 07 February 2018
  21. Miền Nam thiếu điện nhưng các dự án nhiệt điện vẫn 'không vội được đâu', Dai Doan Ket, 24 Mar. 2017.
  22. "Đẩy nhanh tiến độ dự án BOT Nhiệt điện sông Hậu 2," ĐẤU THẦU, 28 November 2017
  23. Toyo Ink looks to a better FY19, The Edge Markets, Sep. 7, 2018
  24. Implementation of Power Projects iIn the Revised Power Development Plan 7, Ministry of Industry and Trade, Republic of Vietnam, Jun. 4, 2019
  25. International Giants Interested in Power Projects in Vietnam, VietNamNet, Oct. 13, 2013.
  26. RoK group interested in Hau Giang’s thermal power plant, Vietnam+, 20 Aug. 2014.
  27. Korea Electric Power Corperation to study and survey investment opportunities into Song Hau 3 thermal power plant, Hau Giang Provincial Government press release, 22 July 2014.
  28. DANH MỤC CÁC DỰ ÁN NGUỒN ĐIỆN VÀO VẬN HÀNH GIAI ĐOẠN 2016 - 2030, Ban hành kèm theo Quyết định số 428/QĐ-TTg ngày 18 tháng 3 năm 2016 của Thủ tướng Chính phủ (LIST OF POWER PROJECT IN OPERATION PERIOD 2016 - 2030, Issued together with Decision No. 428 / QD - TTg of March 18, 2016 by the Prime Minister)
  29. Thermo-Power Project in Delta Approved, Viêt Nam News, Dec. 13, 2011.
  30. Petrovietnam's New Power Plant to Buy Indonesia, Australia Coal, Reuters, Aug. 2, 2011.

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