On 17th August 2015, Otran Energy as a member of Otran Group had signed a cooperation agreement with Mercator Group (India) to distribute 5 million tons of coal to Vietnam market.
This event has helped the company engaged in the import and distribution market of coal. According to Mr. Tran Van Nghia – Chairman of the Board of the Southern Otran – this agreement comes into effect through out the periods of 2 years (2015 – 2016). At the present time, hundred thousands tons of coal have been imported and distributed to the market, which supplies timely to the shortage of coal due to the nature disaster at Quang Ninh.
Leadership representative of Otran Energy and Mercator Group signed the cooperation agreement
According to the Ministry of Industry and Trade, the country’s total coal demand is 41.8 million tons in 2016, which is projected to be 74.9 million tons in 2020 and 143.7 million tons in 2030; while Vietnamese intrinsic ability to exploit coal is 43.8 million tons in 2016, 50.4 million tons in 2020 and 57.5 million tons in 2030. Therefore, the demand for coal importing from other countries in 2020 is expected to be 26.5 million tons and 88.2 million tons in 2030 and will continue to increase in the next few years when the thermoelectric plant goes into operation. In addition, in the field of manufacturing, the demand for coal also steadily increased for many years.
The event marked the participation of Otran in the coal market
Therefore, the company decided to enter the market based on the existing advantages of the deep water seaport system and large warehouses nationwide. Furthermore, Mercator Group – Otran’s partner – owns 4 coal mines in Indonesia with a significant source of coal which is more than 100 million tons and another coal mine in Mozambique with an estimated reserve of about 3 billion tons and many licences for exploring and mining coal, oil & gas in India, Indonesia, Myanmar and Africa. This group has rich sources of high-quality coal with reasonable prices, which ensures that Otran – Top 50 Large Private Enterprises in Vietnam – can maintain a large and diverse coal supply for the market. To ensure the financial sources, at the signing ceremony with Mercator Group, Otran also signed a financial cooperation agreement with BIDV and Agribank.