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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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Thursday, 18 September 14
INDONESIA'S JULY COAL EXPORT VOLUME DROPPED 5.13% M-O-M
COALspot.com: Indonesia, one of the world's largest coal producer and the global leading multi grade coal exporter shipped around $1.65* ...
Thursday, 18 September 14
PANAMAX : US GULF/CHINA FRONTHAUL ARE NOW PAYING TYPICALLY 14.5K + 450K BB - FEARNRESEARCH
Handy
We still see a firming tendency in the Atlantic and it is still ECSA and USG leading on. USG/Cont now up in about USD 17/18k for a Smax whi ...
Thursday, 18 September 14
ELECTRONIC BILLS OF LADING: A GUIDE TO PAPERLESS TRADING WHICH HAS TAKEN THE SHIPPING INDUSTRY BY STORM
Bimco has recently developed and published a charter party clause that specifically addresses the use of electronic bills of lading. Increasing use ...
Wednesday, 17 September 14
PANAMAX: LIMITED INTEREST IN BOTH BASINS; RISING TONNAGE - INTERMODAL
With the week starting off at a fast pace and with the positive momentum from the previous Friday seemingly sticking around for a bit longer, most ...
Wednesday, 17 September 14
SHIPPING MARKET INSIGHT - GEORGE LAZARIDIS
Since the onslaught of 2013 the rising tide of asset prices had been primarily driven by the increasing freight market conditions and the improving ...
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- Indo Tambangraya Megah - Indonesia
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- Formosa Plastics Group - Taiwan
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- Antam Resourcindo - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- Samtan Co., Ltd - South Korea
- SMC Global Power, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Global Business Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Energy Development Corp, Philippines
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- Dalmia Cement Bharat India
- Leighton Contractors Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
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- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- Global Coal Blending Company Limited - Australia
- Asmin Koalindo Tuhup - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The University of Queensland
- Interocean Group of Companies - India
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- McConnell Dowell - Australia
- Karbindo Abesyapradhi - Indoneisa
- Kepco SPC Power Corporation, Philippines
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- Indogreen Group - Indonesia
- Kumho Petrochemical, South Korea
- Star Paper Mills Limited - India
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Jaiprakash Power Ventures ltd
- IHS Mccloskey Coal Group - USA
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- New Zealand Coal & Carbon
- Renaissance Capital - South Africa
- Holcim Trading Pte Ltd - Singapore
- London Commodity Brokers - England
- Tata Chemicals Ltd - India
- Grasim Industreis Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Simpson Spence & Young - Indonesia
- Economic Council, Georgia
- Wood Mackenzie - Singapore
- Lanco Infratech Ltd - India
- Bulk Trading Sa - Switzerland
- Coastal Gujarat Power Limited - India
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
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- Standard Chartered Bank - UAE
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- Kapuas Tunggal Persada - Indonesia
- VISA Power Limited - India
- Intertek Mineral Services - Indonesia
- Electricity Generating Authority of Thailand
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- Vedanta Resources Plc - India
- Bukit Baiduri Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Trasteel International SA, Italy
- Orica Australia Pty. Ltd.
- Ceylon Electricity Board - Sri Lanka
- Carbofer General Trading SA - India
- Binh Thuan Hamico - Vietnam
- Africa Commodities Group - South Africa
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- Gujarat Sidhee Cement - India
- Timah Investasi Mineral - Indoneisa
- Marubeni Corporation - India
- Thiess Contractors Indonesia
- Indian Energy Exchange, India
- Ind-Barath Power Infra Limited - India
- South Luzon Thermal Energy Corporation
- Bukit Makmur.PT - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Commonwealth Bank - Australia
- Ministry of Finance - Indonesia
- Coalindo Energy - Indonesia
- Central Electricity Authority - India
- IEA Clean Coal Centre - UK
- Mjunction Services Limited - India
- Georgia Ports Authority, United States
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- OPG Power Generation Pvt Ltd - India
- India Bulls Power Limited - India
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Chamber of Mines of South Africa
- Anglo American - United Kingdom
- Edison Trading Spa - Italy
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- Global Green Power PLC Corporation, Philippines
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- Planning Commission, India
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- Semirara Mining Corp, Philippines
- Thai Mozambique Logistica
- Bangladesh Power Developement Board
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- Vizag Seaport Private Limited - India
- Savvy Resources Ltd - HongKong
- Parliament of New Zealand
- Ministry of Transport, Egypt
- Siam City Cement PLC, Thailand
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- European Bulk Services B.V. - Netherlands
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- Independent Power Producers Association of India
- Banpu Public Company Limited - Thailand
- Posco Energy - South Korea
- Mercuria Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Videocon Industries ltd - India
- Gujarat Electricity Regulatory Commission - India
- Essar Steel Hazira Ltd - India
- Port Waratah Coal Services - Australia
- Therma Luzon, Inc, Philippines
- Uttam Galva Steels Limited - India
- Aditya Birla Group - India
- Altura Mining Limited, Indonesia
- Manunggal Multi Energi - Indonesia
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- Power Finance Corporation Ltd., India
- Barasentosa Lestari - Indonesia
- Oldendorff Carriers - Singapore
- Billiton Holdings Pty Ltd - Australia
- Bayan Resources Tbk. - Indonesia
- The Treasury - Australian Government
- Australian Coal Association
- Rio Tinto Coal - Australia
- Sojitz Corporation - Japan
- LBH Netherlands Bv - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Eastern Energy - Thailand
- Merrill Lynch Commodities Europe
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- AsiaOL BioFuels Corp., Philippines
- Karaikal Port Pvt Ltd - India
- Romanian Commodities Exchange
- Coal and Oil Company - UAE
- Goldman Sachs - Singapore
- Eastern Coal Council - USA
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Meenaskhi Energy Private Limited - India
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- Energy Link Ltd, New Zealand
- Medco Energi Mining Internasional
- CNBM International Corporation - China
- Petron Corporation, Philippines
- Meralco Power Generation, Philippines
- Bhatia International Limited - India
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- Semirara Mining and Power Corporation, Philippines
- Singapore Mercantile Exchange
- Ministry of Mines - Canada
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- Tamil Nadu electricity Board
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- The State Trading Corporation of India Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Metalloyd Limited - United Kingdom
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- Indonesian Coal Mining Association
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- MS Steel International - UAE
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- Alfred C Toepfer International GmbH - Germany
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- Sindya Power Generating Company Private Ltd
- Electricity Authority, New Zealand
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- Mintek Dendrill Indonesia
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