Power plant planned in gas-rich Hung Yen

Hanoi (VNA) - A group of foreign and domestic industrial giants is ready to invest 400 million USD in two plants to generate electricity and produce diesel from gas in northern Hung Yen province if they succeed in applying the Underground Coal Gasification (UCG) technology.

The Vietnam National Coal-Mineral Industries Group (Vinacomin), Linc
Energy ( Australia ) and Marubeni Corporation ( Japan ) signed a contract
on Oct. 11 regarding the testing of UCG technology, according to the
director of Vinacomin's Song Hong Energy Company, Nguyen Thanh Son.

They also agreed that provided that testing is successful, a joint venture
will be set up for the building of the two plants, with Vinacomin holding 60
percent stake and the other two 20 percent each.

Son said the gas reserve in Khoai Chau district of Hung Yen province and
Tien Hai district of neighbouring Thai Binh province is estimated at 20
billion tonnes of coal equivalent, 6 times higher than the coal reserve in
the country's largest coal mining province of Quang Ninh
Linc Energy has been successful in production of diesel from gas at
42 USD per barrel, compared to the current world price of 75 USD per barrel.