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Monday, 06 October 14
' COAL-BY-WIRE' FROM SUMATRA TO JAVA - THE JAKARTA POST
 Coal from the island of Sumatra accounts for most of Indonesia’s low-grade lignite, a low-quality coal that receives a poor price in international markets.
Given this low pricing combined with high transportation costs and the fact that most reserves are located in landlocked areas, it is not feasible to export Sumatra’s coal out of the island.
It is more efficient to use Sumatra’s coal for a mine-mouth power plant, an approach in which we develop a power plant very close to where mines are located, use the low-calorie coal from the mines to feed the plant, and transmit the electricity, rather than transporting a low-value commodity, out of the mines.
With mine-mouth, we no longer require either barges or expensive railway-heavy infrastructure to transport coal; rather we need to have long-distance high-voltage transmission lines to bring “coal-by-wire” from mines to consumer centers, either regions in Sumatra and/or Java-Bali.
Essentially, with “coal-by-wire” we are transporting a higher-value commodity by wire from mines to customers. Coal stays in the landlocked areas and feeds mine-mouth, coal-fired power plants.
“Coal-by-wire” would definitely boost the development of a domestic market for low-grade coal. Today, our market for coal is very thin as we are one of the world’s leading exporters of thermal coal of a high quality in the international market.
Our exports have increased very significantly within the past decade on account of demand from fast-growing Asian economies. More than 80 percent of our coal currently produced is exported.
Indeed, coal is currently the most important source of energy for our economy. For decades coal has accounted for more than half of our power-generation capacity. And this will continue for a half century to come before alternative and cleaner energy sources other than coal become affordably available.
Our economy is also growing, and of course will require more electricity power and therefore coal – challenges that have to be met. Electricity generation now consumes close to 75 million tons per year, and will almost triple in the next 10 to 15 years.
However, domestic use of coal today notoriously suffers from infrastructure bottlenecks. Congested barges and ports, as well as a shortage of railways limit the transportation of coal from coalmines in two coal-producing regions, Kalimantan and Sumatra, to demand centers in Java-Bali, where most of our power plants are located.
The majority of our coal reserves in the two regions are located in landlocked areas that require rail transportation infrastructure to reach ports for export.
Either truck haul or rail is needed to transport the coal to barge ports and terminals.
Truck operating costs are about twice that of rail, but existing rail transportation infrastructure is severely insufficient.
Indonesia’s attempts to improve coal-transport infrastructure for the domestic market have not been very successful. Dedicated coal ports in Kalimantan have been planned for many years, but implementation has again faced bottleneck issues.
Specialized railways for coal in Sumatra have also been initiated, but this concept is still under development and has not yet received a higher-level mandate or legal authorization.
Delays in expanding the capacity of barge and transportation infrastructure cause inefficiencies and high transportation costs in domestic coal utilization. These high costs and infrastructure bottlenecks have held back the development of the domestic market for coal.
Our high-voltage transmission lines are also astonishingly limited. The state-owned electricity company (PLN) operates approximately 40,000 kilometers of transmission lines, with less than 15 percent of this total serving the island of Sumatra.
If we can build more mine-mouth, coal-fired power generation plants we will need to expand our transmission network across the island, interconnected to other transmission systems in Java-Bali.
A new set of lines of a high-voltage of 500 kilovolts and medium-voltage of 275 kV needs to be developed as a backbone network across the island, i.e. providing long-distance, reliable and stable transmission.
The distribution system and transformer capacity also need to be expanded to service a larger coverage of costumers and demand centers.
We are required also to develop an interconnected transmission system, as existing electricity transmission is not compatible across regions due to different systems and manufacturer standards adopted in the past.
The current initiative of developing inter-island interconnection lines between Java and Sumatra with 500kV High Voltage Direct Current (HVDC) lines needs to be completed in harmony with the mine-mouth development.
These long-distance transmission and distribution lines, as well as interconnected systems are required to exist before a system of mine-mouth power plants is commissioned to ensure that electricity produced can be transmitted in a timely manner and with minimum cost.
Both the central and local governments must work hand-in-hand to endorse incentives to encourage the private sector — independent power producers (IPPs) — to develop mine-mouth power plants.
Incentives need to be designed to enhance the financial viability of IPPs’ mine-mouth power plant projects.
PLN as an off-taker of IPP plays a fundamental role as the “coal-by-wire” agent, and has to be ready to absorb all of the risks associated with the development and operation of the system, including the difficulties in land acquisition and intra-regional compatibility of transmission systems.
Sumatra with its huge resources of low-grade coal can secure its own electricity supply and, eventually, can be the source of low-cost electricity with its energy radiating not only to Java, but also to every corner of the country.
Source: The Jakarta Post
The writer is deputy for energy and mineral resources at the office of Coordinating Economic Minister.
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Monday, 22 September 14
CFR SOUTH CHINA COAL SWAPS LOST ON DAY, WEEK AND MONTH
COALspot.com: API 8 CFR South China Coal swap for delivery in October 2014 decreased US$ 3.10 (-4.50%) month over month and $ 0.95 PT MT week over ...
Monday, 22 September 14
INDONESIAN COAL SWAPS LOST WEEK ON WEEK AND MONTH OVER MONTH
COALspot.com: Indonesian coal swaps for average October 2014 increased US$ 0.35 (+0.69%) day on day and lost US$ 0.30 (-0.58%) per mt week on week. ...
Sunday, 21 September 14
CAPE INDEX LOST 17% W-O-W ; BALTIC DRY PLUNGES 106 POINTS
COALspot.com: This week the freight market softened a bit compared to last week.
BDI fell 8.97% week on week and closed BDI at 1075 points on ...
Friday, 19 September 14
U.S. WEEKLY COAL PRODUCTION RELATIVELY FLAT AT +0.1% - EIA
COALspot.com – United States the world's second largest coal producer, produced approximately 19.20 million short tons (mmst) of coal in ...
Friday, 19 September 14
PRICES FOR DRY BULK CARRIERS HAVEN'T CORRECTED ENOUGH, DESPITE LOWER THAN EXPECTED FREIGHT RATES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A lot has been said and written about the looming dry bulk market recovery over the past few months. However, even if this hasn’t been materi ...
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- Petrochimia International Co. Ltd.- Taiwan
- Maharashtra Electricity Regulatory Commission - India
- Global Business Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- GN Power Mariveles Coal Plant, Philippines
- Latin American Coal - Colombia
- Kumho Petrochemical, South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Eastern Energy - Thailand
- Chamber of Mines of South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Energy Link Ltd, New Zealand
- Meralco Power Generation, Philippines
- Aditya Birla Group - India
- White Energy Company Limited
- VISA Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Renaissance Capital - South Africa
- Maheswari Brothers Coal Limited - India
- The Treasury - Australian Government
- Sree Jayajothi Cements Limited - India
- Wood Mackenzie - Singapore
- Kartika Selabumi Mining - Indonesia
- Parry Sugars Refinery, India
- Africa Commodities Group - South Africa
- Planning Commission, India
- San Jose City I Power Corp, Philippines
- Uttam Galva Steels Limited - India
- Sakthi Sugars Limited - India
- Intertek Mineral Services - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Straits Asia Resources Limited - Singapore
- Marubeni Corporation - India
- Vedanta Resources Plc - India
- Grasim Industreis Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Directorate General of MIneral and Coal - Indonesia
- Mjunction Services Limited - India
- Sindya Power Generating Company Private Ltd
- Pendopo Energi Batubara - Indonesia
- Economic Council, Georgia
- Ind-Barath Power Infra Limited - India
- Cement Manufacturers Association - India
- Samtan Co., Ltd - South Korea
- SMG Consultants - Indonesia
- Holcim Trading Pte Ltd - Singapore
- GVK Power & Infra Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Australian Commodity Traders Exchange
- ASAPP Information Group - India
- Altura Mining Limited, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ceylon Electricity Board - Sri Lanka
- Jorong Barutama Greston.PT - Indonesia
- Orica Mining Services - Indonesia
- Bhatia International Limited - India
- Oldendorff Carriers - Singapore
- Merrill Lynch Commodities Europe
- Metalloyd Limited - United Kingdom
- Karaikal Port Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Dalmia Cement Bharat India
- Gujarat Electricity Regulatory Commission - India
- Larsen & Toubro Limited - India
- Rio Tinto Coal - Australia
- Sojitz Corporation - Japan
- Manunggal Multi Energi - Indonesia
- IEA Clean Coal Centre - UK
- Ministry of Transport, Egypt
- CIMB Investment Bank - Malaysia
- Coalindo Energy - Indonesia
- Energy Development Corp, Philippines
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- Agrawal Coal Company - India
- Toyota Tsusho Corporation, Japan
- Anglo American - United Kingdom
- Timah Investasi Mineral - Indoneisa
- Therma Luzon, Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Indogreen Group - Indonesia
- Mercator Lines Limited - India
- Indonesian Coal Mining Association
- Global Coal Blending Company Limited - Australia
- GMR Energy Limited - India
- PNOC Exploration Corporation - Philippines
- Central Electricity Authority - India
- Antam Resourcindo - Indonesia
- Essar Steel Hazira Ltd - India
- Heidelberg Cement - Germany
- Makarim & Taira - Indonesia
- Madhucon Powers Ltd - India
- Goldman Sachs - Singapore
- Australian Coal Association
- Semirara Mining Corp, Philippines
- London Commodity Brokers - England
- Petron Corporation, Philippines
- The State Trading Corporation of India Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- Eastern Coal Council - USA
- Mercuria Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Borneo Indobara - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Riau Bara Harum - Indonesia
- Videocon Industries ltd - India
- Coal and Oil Company - UAE
- Deloitte Consulting - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ambuja Cements Ltd - India
- Lanco Infratech Ltd - India
- Bharathi Cement Corporation - India
- Commonwealth Bank - Australia
- European Bulk Services B.V. - Netherlands
- Gujarat Sidhee Cement - India
- Baramulti Group, Indonesia
- Georgia Ports Authority, United States
- Globalindo Alam Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Savvy Resources Ltd - HongKong
- South Luzon Thermal Energy Corporation
- Kohat Cement Company Ltd. - Pakistan
- Simpson Spence & Young - Indonesia
- PTC India Limited - India
- McConnell Dowell - Australia
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- Gujarat Mineral Development Corp Ltd - India
- Bukit Makmur.PT - Indonesia
- SN Aboitiz Power Inc, Philippines
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kepco SPC Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Tata Chemicals Ltd - India
- Power Finance Corporation Ltd., India
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Electricity Authority, New Zealand
- Singapore Mercantile Exchange
- International Coal Ventures Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Romanian Commodities Exchange
- Global Green Power PLC Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Kapuas Tunggal Persada - Indonesia
- Electricity Generating Authority of Thailand
- Iligan Light & Power Inc, Philippines
- New Zealand Coal & Carbon
- ICICI Bank Limited - India
- Sarangani Energy Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Barasentosa Lestari - Indonesia
- SMC Global Power, Philippines
- Attock Cement Pakistan Limited
- Kalimantan Lumbung Energi - Indonesia
- Xindia Steels Limited - India
- Salva Resources Pvt Ltd - India
- Bhushan Steel Limited - India
- AsiaOL BioFuels Corp., Philippines
- Ministry of Mines - Canada
- Star Paper Mills Limited - India
- Kaltim Prima Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- Alfred C Toepfer International GmbH - Germany
- Jaiprakash Power Ventures ltd
- Independent Power Producers Association of India
- Indian Energy Exchange, India
- Vizag Seaport Private Limited - India
- Medco Energi Mining Internasional
- Malabar Cements Ltd - India
- Port Waratah Coal Services - Australia
- Asmin Koalindo Tuhup - Indonesia
- Leighton Contractors Pty Ltd - Australia
- GAC Shipping (India) Pvt Ltd
- MS Steel International - UAE
- The University of Queensland
- Sinarmas Energy and Mining - Indonesia
- Tamil Nadu electricity Board
- Thai Mozambique Logistica
- Ministry of Finance - Indonesia
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- Banpu Public Company Limited - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Miang Besar Coal Terminal - Indonesia
- Mintek Dendrill Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- Sical Logistics Limited - India
- Posco Energy - South Korea
- Indika Energy - Indonesia
- Standard Chartered Bank - UAE
- Kideco Jaya Agung - Indonesia
- LBH Netherlands Bv - Netherlands
- Minerals Council of Australia
- Bangladesh Power Developement Board
- Pipit Mutiara Jaya. PT, Indonesia
- Kobexindo Tractors - Indoneisa
- TeaM Sual Corporation - Philippines
- Formosa Plastics Group - Taiwan
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