Global Energy Sources Buy Laos Coal To Be Sent To Vietnam

Coal (photo: dock. intermediate)

JAKARTA - PT Sumber Global Energy Tbk (SGER) purchased coal from a Laos-based producer, namely Xekong Power Plant Company, to then send as much as 70,000 tons to Vinacomin Northern Coal in Vietnam.

The coal trading company made a shipment which is part of the company's contract with Vinacomin Northern Coal worth US$22.51 million.

"Coal purchased has a calorie value specification aka net calorific value of 4,833 (kcal)/kg, has an ash content of 28.65 percent, and has sulfur content of 0.43 percent," said SGER President Director Welly Thomas quoting Antara.

Welly assessed that the coal purchased from Laos has a fairly competitive competitive competitive competitiveness, with a fairly competitive selling value and demand for low-calorie coal is still quite good, especially from developing countries.

"In Southeast Asia, Vietnam is the country with the highest demand growth rate," said Welly.

Along with the positive coal prospect, his party targets the company's revenue to grow 10 percent year on year (yoy) by 2024.

Meanwhile, Laos has coal reserves of around 554 million tons of coal reserves, and is ranked 37th in the world, with Laos' remaining coal lasting about 106 years.

"Laos is one of the countries we are eyeing as a source of coal purchases. In the future, we will continue to explore opportunities for shipments to Vietnam and other countries, especially in Southeast Asia, considering the potential for coal demand in this region is still quite high," said Welly.

Previously, SGER had won a coal delivery contract from a consortium from Vietnam, namely Vinacomin Northern Coal with a potential contract value of up to 22.51 million US dollars.

According to the agreement, the volume of coal to be supplied is 200,000 metric tons (MT), with a duration of contract implementation, which is from the date of signing the contract until August 15, 2024.