Vietnam looks at more coal power plants as Iran war complicates LNG plans

Vietnam's government is considering building more coal-fired power plants to ensure it can meet its energy needs, the government said on Wednesday, as the Iran war further complicates its slow development of LNG facilities.

The Southeast Asian manufacturing hub is seeking to ramp up its power generation capacity to support its fast-growing economy, with a focus on renewables and LNG.

"In recent times, the unfolding conflicts in the Middle East have impacted the security of LNG supplies, creating a need to strengthen energy security," the government said in a statement on Wednesday.

It said it may adjust its national power plan to add more coal-generated energy to the mix.

Vietnam had set a target to have a fleet of LNG-fired power plants with combined capacity of 22.5 gigawatts by 2030.

It has so far reached just 7.3% of that target, due mostly to regulatory hurdles and lack of investor interest, though the Iran war has also raised concerns about the security of LNG supplies.

Under its existing plan, Vietnam is aiming for total installed capacity in a range of 183 to 236 GW by 2030, with coal-fired power plants accounting for 13.1%-16.9% of the mix, and LNG for 9.5%-12.3%.

Electricity output in the first half of this year rose 9.8% from a year earlier to 171.5 billion kilowatt hours, with coal-fired power plants accounting for 54.5% of the output, according to state utility EVN.

-Reporting by Khanh Vu; Editing by John Mair/Reuters