Cambodia has abandoned plans for a $1.5 billion, 700-megawatt coal-fired power project in a protected reserve along the southwestern coast. The decision comes in favor of constructing an 800-megawatt natural gas-fired plant, according to the country's energy minister.
As part of this shift, Cambodia is exploring the construction of a liquefied natural gas (LNG) terminal to import and re-gasify super-chilled fuel for the power plant, marking Cambodia's entrance into the Southeast Asian LNG import market. The proposed LNG terminal, likely a fixed land-based facility, would be Cambodia's first.
Energy Minister Keo Rottanak revealed that Cambodian Prime Minister Hun Manet will officially announce the cancellation of the 700 MW coal power plant project in Koh Kong on November 30. Instead, plans are underway to replace it with an 800 MW LNG facility, expected to be commissioned after 2030. The minister did not disclose the estimated cost of the gas-fired plant and LNG terminal.
The initial Botum Sakor coal plant project had faced criticism from environmentalists and residents due to its encroachment on dense forest areas, posing a threat to livelihoods and risking pollution in the reserve—a habitat for numerous endangered species.
The decision to abandon the coal project, originally slated to commence power production by the end of 2025, aligns with Cambodia's commitment to cleaner energy. The country aims to increase its share of clean generation capacity to 70% by 2030, up from the current 52% in 2022, primarily by investing in new solar and wind farms and hydro projects.
Energy Minister Rottanak stated that the announcement in Cambodia would serve as a signal to the upcoming United Nations annual climate conference, COP28, taking place in Dubai.
Cambodia has experienced a 15% annual growth in power demand over the past decade, addressing it predominantly through hydropower. Unlike some neighboring countries such as Malaysia and Vietnam, Cambodia has opted for clean power sources, primarily hydropower, but has faced challenges due to weather-related disruptions affecting hydropower generation.
Around two years ago, Cambodia had declared its intention not to pursue new coal-fired power projects, except for those already under construction. With the cancellation of the Botum Sakor project, the country's sole remaining coal power project in development is a long-delayed, small-scale 265 MW unit in the northern Oddar Meanchey province.
The Botum Sakor coal-power project, initially planned by Cambodia's Royal Group—a local conglomerate with investments in telecoms and transport—will now be replaced by the gas project, as confirmed by Minister Rottanak.
