Japanese shipping major NYK Group has concluded a 25-year contract for the transport of coal to a coal-fired power project to be constructed in Vietnam’s Khanh Hoa province.
The deal was signed with Van Phong Power Company Limited, a subsidiary of Sumitomo Corporation.
The coal will be transported mainly from Australia and Indonesia for a new coal-fired power plant in the Van Phong Special Economic Zone in Vietnam’s Khanh Hoa province.
Shipments will begin from 2023 and the volume is expected to be up to 3.4 million tons annually.
Earlier reports indicated that Vietnam’s future supply of electricity may not be adequate to meet the demands of the country’s rapid economic growth. NYK expects to help ensure a stable energy supply with these fuel transportation contracts.
In accordance with its new medium-term management plan “Staying Ahead 2022 with Digitalization and Green” announced last year, the NYK Group is controlling its exposure to market conditions by maintaining and expanding long-term contracts in the dry bulk division.