Vietnam to slash coal exports by a third in 2008

Vietnam, a key coal supplier to Japan and China, will slash coal exports this year by more than 32 percent to about 22 million tonnes to save more for new power plants at home, a government official said on Friday.

Vietnam’s plan to cut exports comes at a time of tight coal supplies in most exporting countries because of strong domestic demand and a series of transport and weather-related problems, sending prices to all-time highs.
Last year, Vietnam shipped 32.5 million tonnes of its total production of 41.2 million tonnes, 11 percent higher compared with 2006, statistics showed.

“A number of new coal-fired power plants will be put into operation this year. So we need to reduce exports to raise enough supply for them,” an official from the Industry and Trade Ministry said.

“The plan is to gradually reduce exports and eventually stop all coal exports to meet domestic consumption only,” said the official who declined to be identified.

Power demand in the fast-expanding Southeast Asian economy is expected to grow between 18 percent and 20 percent annually, prompting the government to seek ways to diversify energy sources including coal, water, natural gas, wind power and nuclear.

NineMSN