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Dung Quat has been earmarked by the Vietnamese government to become a multisectoral economic zone and a base for oil refining and petrochemical industries. - Ng Meng Poh, Executive vice president and head of Singapore and ASEAN of Sembcorp Utilities

Sembcorp Industries has added spark to its power plans in Vietnam by signing a memorandum of understanding with central Quang Ngai Provincial People’s Committee.

The company, a wholly-owned subsidiary of Singaporean Sembcorp Utilities, signed the agreement last week following up on a visit to the province last November.

Sembcorp will now look into the feasibility of developing a 1,200 megawatt, coal-fired power plant in the province’s Dung Quat Economic Zone.

“Dung Quat has been earmarked by the Vietnamese government to become a multisectoral economic zone and a base for oil refining and petrochemical industries. As such, Sembcorp certainly sees opportunities to invest and further establish our utilities presence in this fast growing region,” said Ng Meng Poh, executive vice president and head of Singapore and ASEAN of Sembcorp Utilities.

With the firm’s combined expertise and proven track record, Poh said Sembcorp was well-positioned to offer integrated solutions for the zone’s present and future power needs.
This is the second agreement Sembcorp has signed with Quang Ngai Provincial People’s Committee in the last six months.

In September 2011, Sembcorp’s Industrial Parks business, through its joint venture, the Vietnam Singapore Industrial Park, also signed a memorandum of understanding with the province to conduct a comprehensive feasibility study of a 1,020ha integrated township and industrial park in Dung Quat. This project comprises a 500ha industrial park and 520ha zoned for commercial and residential purposes near downtown Quang Ngai city.

“We are confident that, with Sembcorp’s group strength and capabilities, we will be able to offer an integrated approach to support the development of Dung Quat Economic Zone,” said Low Sin Leng, executive chairwoman of Sembcorp Industrial Parks, also deputy chairwoman of Sembcorp Utilities.

The power investment in Dung Quat, if implemented, will be Sembcorp Industries second power project in Vietnam. Ten years ago, the Singaporean investor hooked up with Kyushu Electricity, Sojitz Corporation and BP to invest in the 749MW Phu My 3 power plant.

To facilitate the Sembcorp’s power investment, the local authorities last month proposed that the Ministry of Industry and Trade (MoIT) to approve the construction of a power centre in the province’s Dung Quat Economic Zone.

Cao Khoa, chairman of Quang Ngai Provincial People’s Committee, said: “If the MoIT agrees to the setting up of a power centre here, we will have right conditions to call for private investment to develop coal or gas-fired power plants in the zone.”