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Dung Quat celebrates 600 days

April 18, 2014

QUANG NGAI (VNS) The Dung Quat Oil Refinery, the first of its kind in Viet
Nam, has been operating smoothly and safely for 600 days and nights.
A ceremony was held on Tuesday in the central province of Quang Ngai,
where the plant is located, to mark the achievements of the refinery.
Since it became operational in 2009, the plant has sold 26.7 million tonnes of
products, earning VND543 trillion, or US$25.5 billion, in revenue, and
contributing VND86 trillion, or $4.03 billion, to the State budget. In the first
three months of 2014, it marketed nearly 1.7 million tonnes of products,
gaining over VND37 trillion, or $1.7 billion.
It contributed over VND7 trillion ($333 million), to the State budget. VNS
Source: Vietnamnews

Vietnam biofuel market remains modest

April 16, 2014
Vietnam has great potential in the development of biofuels but the use of
this kind of energy remains limited, according to the Vietnam Economic News
Every year, Vietnam still exports millions of tonnes of raw cassava to other
countries for producing ethanol. In order to promote the development of the
biofuel industry, the prime minister signed Decision 177/2007/QD-TTg on
the project of developing biofuels by 2015 with a vision to 2025.
Head of the Ministry of Industry and Trade's Science and Technology
Department Nguyen Dinh Hiep said Vietnam has successfully carried out
research and mixed some kinds of biofuels like E5 (petrol containing five
percent of ethanol), E10, E15 and E20 and launched pilot sales at 160 stores
nationwide. The biggest advantages of using bio-fuel are to reduce from 2744 percent of the gases causing the greenhouse effect and also to save fuels
According to the experts from Hanoi University of Science and Technology
and the Centre for Technology Application and Transfer under the Vietnam

Petroleum Institute, the E5, even E10 and E20 in conventional engines which
are popular in Vietnam will not fundamentally affect the vehicle 's features.
Using the biofuels even helps motorcycles and automobiles start and speed
In particular, with materials mainly from industrial production, the
development of biofuels can stimulate agricultural production and expand
markets for agricultural products in the country. Pham Anh Tuan, CEO of
Phuong Dong Biofuel Company said if cassava production remains stable,
about 300 thousand households or 1.2 million people, most of them living in
Recognising the importance of biofuel to the energy security issue, the
Vietnam Oil and Gas Group (PVN) has worked out a roadmap to develop
biofuel with a target by 2015 with a vision until 2025 to develop biofuels
which can ensure energy security, improve the environment and increase
To accomplish this goal, PVN and Petro Vietnam Oil Corporation have put into
operation three projects on producing ethanol biofuels with capacity of
300,000 cu.m per year, including Phu Tho Ethanol Plant (Tam Nong district,
Phu Tho province), Quang Ngai Ethanol Plant (Dung Quat Economic Zone,
Quang Ngai province) and Binh Phuoc Ethanol Plant (Bu Dang district, Binh
According to PVN, the government has granted permission to build six
ethanol plants using cassava chips as raw materials which helped cassava
farmers in neighboring provinces stabilize production and lives.
However, finding markets and consumers at present remain limited, resulting
in difficulties for the government to draw a roadmap for using biofuels across
the country. According to experts, Vietnam needs to develop the distribution
systems across the country, and raise peoples awareness of the benefits
The nation now has six ethanol plants with a total capacity of 535 million
liters a year. Of these, domestic consumption accounts for 20 percent and
the remainder is exported to Japan, the Republic of Korea and the Philippines.
According to the governments roadmap, the E5 bio-petrol will be used in
seven cities and provinces and across Vietnam in 2015. From the end of
2017, bio-petrol E10 will also be used across the country.-VNA
Source: VietnamPlus

Long Thanh airport project to go before Govt, NA soon

April 16, 2014
CMC - The big-ticket Long Thanh international airport project has
won approval of an evaluation council to go before the Government
and the National Assembly (NA) although there are a number of
issues needing clarifying.
Thirteen of 16 members of the evaluation council voted in favor of the
project, which permits Airports Corporation of Vietnam (ACV) to send the
project to the Government for consideration before it is passed to the
National Assembly for discussion at its next sitting slated to open next
month, the Civil Aviation Administration of Vietnam said on its website.
Although the project got support from a majority of the councils members,
there are many points that project owner ACV has been unable to answer the
council, which is chaired by Minister of Planning and Investment Bui Quang
Firstly, ACV does not clarify in its investment report on the project the
conditions and advantages for the planned Long Thanh International Airport
in Dong Nai Province to become an international transit hub for airlines.
Secondly, the council has not found a single sound reason why ACV would
build one runway and one terminal able to handle 17 million passengers in
the first phase of the project instead of two runways as it reported two
months ago.
The third issue is how to find financing for the project.
Given the issues, the council suggested the Government order ACV to make
clear the concerns before the Ministry of Transport forwards the project to
the NA for consideration and approval.
The council was established according to the Prime Ministers decision to
assist the Government in assessing related investment reports before the
project is passed to the NA for approval. Besides Minister Vinh, other
members of the council are leaders of relevant ministries.
In a meeting earlier this month, Minister of Transport Dinh La Thang told the
project owner to implement the projects first phase that would develop one

runway and one terminal with an annual designed capacity of some 17

million passengers.
Thang also required ACV to make clear funding sources such as State money,
official development assistance (ODA) loans and private funds for each
component of the project. For ODA loans, he suggested that the corporation
take out ODA loans guaranteed by the Government and paid by the project
owner or the corporation be permitted to gain direct access to ODA loans.
According to the government of Dong Nai Province, about 3,320 of 5,380
houses would be cleared to make room for the airport project. The cost of
site clearance and compensation was estimated at nearly VND20.8 trillion in
In its previous report, ACV proposed completing Long Thanh airports first
phase by 2020 with two runways for modern aircraft, including Airbus A380.
This phase requires more than US$7 billion.
In the second phase due for completion by 2030, the airport would have
three runways able to handle 50 million passengers a year.
With the third phase due to be completed after 2030, there would be four
runways in the airport, which are expected to handle up to 100 million
passengers and five million tons of cargo annually.
Source: The Saigon Times

Indonesias 1st-Half Coal Production Little Changed Even With Price

April 15, 2014
Indonesias coal production by volume in the first quarter remained little
changed from the same period last year despite the decline in the coal price,
according to the Energy and Mineral Resources Ministry.
Coal production as of April 10 stood at 110 million [metric] tonnes. That is
already a quarter of our target this year, which is 421 million tonnes, said R.
Sukhyar, the ministrys director general of coal and mineral resources, over
Coal exports accounted for 74 percent, or 81 million tonnes, of total coal
production, while domestic demand made up the remaining 26.4 percent.

By the end of March of last year, coal production was 105 million tonnes.
Sukhyar said that the low coal commodity price has hurt production at
Production cost could reach above $25 per tonne. If the coal selling price is
$19 per tonne, then businesspeople will have difficulties in producing coal,
Mining companies, though, would have to be efficient in response to the drop
in coal price, said Supriatna Suhala, the executive director at the Indonesian
To cover the loss, businesspeople will increase production in general, he
said, adding that businesspeople would also have to make cuts in
In April, coal was selling at about $74 per tonne, while the lowest coal selling
The benchmark coal index in Newcastle had dropped 15 percent to $74.55
per tonne in the first quarter. Coal peaked in early 2011 at more than $135 a
tonne, but it has fallen in each of the past three years.
The total amount of coal production in the first quarter this year came from
mining companies that hold coal mining licenses [PKP2B] and permits [IUP],
said Edi Prasodjo, the coal business director at the Energy Ministry.
PKP2B [holders] contribute some 75 million tonnes, and the rest is from IUP
Additionally, Sukhyar said that the plan to raise the royalty fee on coal to
13.5 percent for coal mining permit holders was still under discussion. The
increase will be included in the revised version of the 2012 government
regulation related to non-tax state income. Some small coal miners pay as
We are still discussing it with the APBI. [The royalty increase] should be
handled prudently, because the price is dropping. Dont let the
implementation shut down production, Sukhyar said.
Source: Vinacomin

Vinacomin: Many solutions to solve problems

April 15, 2014
In the first three months of 2014, crude coal output came to an estimated
10.07 million tonnes, 26.7 percent of the years target and 95.92 percent of
that in the same period last year. The corporations clean coal output was an
estimated 8.73 million tonnes, 25.5 percent of the years target and 93.3
percent of that in the same period last year.
Coal sales were 9.43 million tonnes in the first quarter of 2014, 26.95
percent of the years target and 97.5 percent of that in the same time last
year. Of this, coal exports reached 2.34 million tonnes and domestic sales
came to 7.09 million tonnes. Coal inventories came to 8.42 million tonnes at
the end of the first quarter of 2014, including 6.07 million tonnes of finished
coal and 2.35 million tonnes of crude and semi-finished coal.
Vinacomin President and CEO Le Minh Chuan said that the high coal
inventory in March was attributed to unfavorable weather conditions that
greatly affected coal transport and sales. This was why Vinacomin hadnt
Vinacomin Deputy President Nguyen Van Bien said that clearing inventories
is one of solutions to solve problems faced by the coal industry. Vinacomin
told its member units to focus on increasing sales and looking for buyers,
keep abreast of market requirements, keep good relationship with clients,
and strictly control the quality of coal delivery to stabilize production and
At an online conference on production management in April and the second
quarter of 2014 of the coal industry, Mr. Le Minh Chuan said that coal sales
will prosper as the domestic demand, especially the demand for coal for
electricity production, increases. Vinacomin will supply coal to the Mong
Duong II Thermoelectric Center (Vinacomin) and Vinh Tan Thermoelectric
Plant 2 (the Vietnam Electricity group). Vinh Tan Thermoelectric Plant 2
consumed more than 3.7 million tonnes of coal per year and the Mong Duong
II Thermoelectric Center is expected to consume 20,000-30,000 tonnes of
coal daily. This is a good sign for coal sales in the coming years.
Vinacomin set a target of reaching a growth of more than 25 percent in the

second quarter of 2014 and accomplishing at least 52 percent of the years

target in the first half of this year. To reach the target, Mr. Le Minh Chuan told
Vinacomin members to focus on managing coal production and sales to
increase sales. He also told member units to refine coal at mining sites and
asked forwarding and port units to improve coal transportation.
Vinacomin told its member units to continue to review and reduce production
costs, improve investment efficiency, promote cooperation in the use of
quality, reasonably priced products and services, continue to implement
corporate restructuring, and work with ministries and sectors to overcome
production difficulties and increase sales in the coming time.
Source: Vinacomin