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Vietnam's coal emissions primed for surge after imports jump: Maguire

July 12 (Reuters) - Vietnam's thermal power emissions are primed for a steep climb this summer after the country's imports of thermal coal soared to their highest levels in three years in May and June.

Vietnam's utilities boosted imports of thermal coal to more than 3 million tonnes in both May and June this year from a monthly average of around 1.5 million tonnes throughout 2022, data from Kpler shows, as a lengthy heatwave across the country caused a spike in air conditioner use.

The recent import spree brings Vietnam's total imports for the first half of 2023 to roughly 13.5 million tonnes, which is the highest for that period since 2020, when Vietnam's full-year coal imports hit an all-time high.

The sharply higher coal imports indicate that power producers have lifted coal-fired electricity generation to keep up with the demand for power-hungry air conditioning, and may generate commensurately higher power sector emissions going forward as the purchased coal gets burned to make power.

BACKSLIDING

The sharp rise in thermal coal imports snaps a lengthy quiet spell by Vietnam, the 18th largest CO2 emitter globally in 2022, on international coal markets.

Vietnam's monthly thermal coal imports have stayed below 2.5 million tonnes since August of 2020, and averaged only 1.4 million tonnes throughout 2021 and 2022 as the country's utilities moved to increase renewable power output and reduce power sector emissions.

Diminished industrial activity in neighbour and key trade partner China in 2022, due to protracted lockdowns to limit the spread of COVID-19, also stifled Vietnam's own industrial power needs over the past year.