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Vietnam Energy Forum

The MOIT chaired a meeting on coal supply and coal import for electricity and fertilizer

 - On March 3, 2023, at the headquarters of the Ministry of Industry and Trade (MOIT), Minister Nguyen Hong Dien chaired a meeting with the leaders of Electricity of Vietnam (EVN), Vietnam Oil and Gas Group (PVN), and Vietnam National Coal - Mineral Industries Holding Corporation Limited (TKV), Power Generation 1, Power Generation 2, Power Generation- 3 Joint Stock Company, TKV Power Company, PVN Power Company, Northeast Coal Corporation; Ninh Binh Fertilizer Single Company Limited, Ha Bac Fertilizer and Chemical Joint Stock company and a number of the coal-fired thermal power plants on the coal supply and coal import for electricity and nitrogen fertilizer production.

The MOIT chaired a meeting on coal supply and coal import for electricity and fertilizer
The Minister of Industry and Trade chairs the meeting on coal supply and coal import for electricity and fertilizer.

At the meeting, the representatives of the leaders of the groups and enterprises reported on the situation of the coal supply and coal import for electricity and nitrogen fertilizer production in 2022; They also reported the difficulties and problems and proposed solutions and recommendations to MOIT to ensure sufficient coal supply for electricity and nitrogen fertilizer production in 2023. The recommendations were listened to and answered by the Minister; at the same time, the functional departments of the Ministry have proposed specific and substantive solutions to remove difficulties and support enterprises. A number of the recommendations need to be further studied in order to have feasible, effective solutions and that will comply with the laws.

Speaking at the meeting, MOIT Minister Nguyen Hong Dien highly appreciated the efforts of the units in the production, import and supply of coal for electricity and fertilizer production in the recent time, contributing to ensuring providing enough electricity and nitrogen fertilizer to serve the socio-economic development of the country and daily life of the people; to contribute a large source for the State budget, in the context that the enterprises faced many different difficulties and challenges in the recent time from the geopolitical conflicts in the world, that led to the energy crisis and high input fuel prices.

In order to ensure sufficient coal supply for electricity and nitrogen fertilizer production in 2023 and the following years, the MOIT Minister requested the groups and corporations, investors of coal-fired power plants and nitrogen fertilizer plants to implement the following main tasks and solutions:

Firstly: In all situations, the groups (TKV, EVN, PVN), corporations and investors of power and fertilizer plants have to ensure an adequate coal supply for electricity and nitrogen fertilizer production to serve the economic development of the country and daily life of the people (including the local shortages and faults).

To do that, the enterprises need to seriously and effectively carry out the tasks assigned by the Prime Minister related to the coal supply for electricity production (Directive No. 29/CT-TTg dated December 2, 2019) and the direction of MOIT on the supply of coal for electricity and nitrogen fertilizer production in the recent time; at the same time, to make firmly sure the situation and promptly report and propose to the competent authorities to direct the timely resolving the difficulties and problems in production and business activities of enterprises.

Secondly: The related parties strictly implement the commitments in the signed contracts for selling coal for electricity and nitrogen fertilizer production. The Coal suppliers take full responsibility if they do not supply enough coal as committed, leading to coal shortages for domestic electricity and nitrogen fertilizer production. On the contrary, coal-using enterprises also have to be responsible if they fail to properly perform the coal purchase contract.

Thirdly: To take the initiative, positive and promote the activities on cooperation, looking for partners to export coal in the world, especially with countries to which Vietnam is a member in free trade agreements and countries that have signed cooperation documents with functional ministries and agencies; in which, attention should be paid to potential coal export markets (such as Australia, Indonesia, South Africa, Laos ...) that MOIT has organized connection at the trade forums and the relevant sessions.

Fourthly: Expeditiously organize a study on Laos' mechanisms and policies related to coal trade activities and survey the coal market of Laos and the routes of coal transportation to Vietnam to ensure optimally. There is a plan to prepare a coal storage system in Vietnam in the appropriate locations (especially in the provinces/cities bordering Laos) to effectively receive imported coal from Laos.

Fifthly: The Coal import units need to develop coal import actively plans with a specific roadmap for implementing, good preparing the human resources, finance and infrastructure for importing the coal for domestic electricity and nitrogen fertilizer production.

Sixthly, TKV and Dong Bac Coal Corporation must effectively implement solutions to improve coal production and processing capacity to produce maximum types of coal according to the demand of the users, especially coal for electricity production. Expeditiously check the system of warehouses and ports in the Central and Southern regions to study and propose to build options and transit warehouses for coal storage to ensure sufficient and stable coal supply for coal-fired power plants (according to the direction of the Prime Minister in Directive No. 29/CT-TTg).

Regarding the recommendations of the enterprises MOIT minister has given specific instructions and asked to focus on solving problems between coal suppliers and investors of thermal power and nitrogen fertilizer plants, in which clearly raised the content to be implemented, the implementation schedule and the unit in charge of implementation; at the same time, MOIT departments must carefully study recommendations, review current regulations, detect and adjust inadequacies and need to closely coordinate with enterprises to implement synchronously and effectively, with focuses of the solutions, promptly report to competent authorities for consideration and settlement.

The Minister also assigned the Inspectorate of the Ministry to develop a plan for periodic inspection and unexpected inspection of units, ensuring that supervision is carried out according to the set plan and schedule.

In addition, Minister Nguyen Hong Dien also oriented specific immediate and long-term solutions to speed up domestic coal production and processing and increase coal import to ensure sufficient coal supply for electricity and fertilizer production.

MOIT minister also directed EVN, PVN, TKV, Northeast Coal Corporation, and investors of thermal power and fertilizer plants to pay more attention to increasing labor productivity, innovation, and a good deal relationship between input raw material/fuel and output product prices in accordance with market rules and a socialist-oriented market economy; raise the spirit of all for the common goal to strengthen the coordination mechanism to promptly and effectively solve difficulties and problems arising in production and business activities, especially in cooperation for selling each other's products. To coordinate implementing the transparent and effective signed contracts to accompany development, contributing to ensuring national energy security on the basis of harmonizing interests between businesses and continuing to make positive contributions to the socio-economic development of the country.

VietnamEnergy.vn

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