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Tuesday, 10 September 13
WORLDWIDE COAL CONSUMPTION RISES SHARPLY - RA DR. ERICH SCHMITZ
 By: RA Dr. Erich Schmitz, Verein der Kohlenimporteure (Germany Coal Importers Association)
World hard coal market in the first half of 2013: worldwide production and world trade stagnating, imports to Europe and Germany rise in HY1 2013 despite the massive expansion in renewable energies.
Energy consumption worldwide increases only slightly – in contrast, coal consumption rises sharply.
According to initial calculations by BP in the Statistical Review of World Energy, June 2013, world energy consumption in 2012 experienced a below-average rise of 358m TCE to 17.8bn TCE (about 2%) in comparison with 2011; initial estimates of the World Energy Council for 2012 show a rise of 420m TCE (2.20%) to 19.1bn TCE, taking renewable energies into account. This modest growth is a consequence of the global economic stagnation which has had an impact on the OECD region above all.
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The Asian-Pacific region, where the increase was 4.70%, continues to be a region of growth in primary energy. Worldwide oil consumption of 4,130m tonnes rose only slightly (+1.20%). For the fifth year in succession, the EU 27 countries and the USA reduced their consumption of primary energy, by just under 1% and 2.50%, respectively. Russia ’s energy consumption , on the other hand, remained virtually unchanged.
The rise in the world consumption of primary energy is largely a consequence of the increase in hard coal consumption by about 3.30% and in gas consumption by 2.40% related to the shale gas boom in the USA. In view of the slower economic growth in China, India and other South-east Asian countries and a recession in many OECD countries, the VDKi expects stagnation in primary energy consumption and consequently in coal consumption as well for 2013.
China especially will play a key role here because this country accounts for more than 50% of worldwide coal consumption and worldwide coal production. According to data from the national coal association in China, the consumption of steam and coking coal in HY1 2013 in China amounted to 1.93bn tonnes, corresponding to an increase of only 1% in comparison with 2012, but 7.60% less than during the comparable period of 2011.
On the other hand, production of 1.79bn tonnes during the first six months represented a decline by 3.7% in comparison with HY1 2012. Presumably the high inventories, which according to newspaper reports still amounted in all of China to about 300m tonnes at the end of June, have been reduced.
Seaborne hard coal trade (steam coal only) continues at the level of the previous year (410m tonnes) according to calculations of the VDKi. However, there have been shifts among the exporting nations: Indonesia (+26m tonnes) and Australia (over +10m tonnes) have increased their exports while Colombia (-5m tonnes owing to strikes and logistic restrictions at the beginning of the year), South Africa (almost -3m tonnes) and Russia (-1m tonnes) have exported less steam coal.
The background for the rise in exports from Indonesia and Australia could be China’s announcement that it will in the future prohibit the import of hard coal of lower quality (calorific values, sulphur or ash content) from Indonesia and Australia in particular. This may have led to early deliveries in fulfillment of contractual purchase obligations in existing contracts. According to data from IHS McCloskey Coal Report, China imported about 15m tonnes more coal (hard coal and lignite) during HY1 than in 2012.
Europe and Germany
A slight, but steady, increase in coal consumption in the European Union, especially in the United Kingdom, France and Spain, has been observed in the last two years. Declining hard coal output in Germany, Spain and Poland is being compensated by increased imports.
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The long winter in Europe and the favorable clean dark spread (costs for coal, freight and CO2 certificates), which has been lower in comparison with the clean spark spread (costs for gas, transport and CO2 certificates) for some time, encourage coal-fired power generation in Europe. The electricity is frequently exported to countries strongly dependent on gas such as the United Kingdom or Holland.
According to a report on the European electricity market in Q2 2013 from the EU Commission, the electricity prices for the base load in Q2 fell significantly (weighted for volume , from € 46/MW h in March 2013 to €30/MW h in June 2013 ).
Since coal prices continued to fall as well and the CO2 prices remained low, this meant, according to data from the DG Energy of the EU Commission, that the share of solid fuels for power generation exceeded 50%, which is a higher figure than that of 2012 (45 %). However, the clean dark spread decline d to €4 /MW h; in the two previous quarters, it had still been in the two-digit range. All of this took place against the backdrop of the rising share of renewable energies; production from these sources was high in Q2 and, according to data from the EU, led for instance to negative power prices below -€100 /MW h in Germany and Belgium an d be low -€ 200 /MW h in France on 16 June of this year.
Power generation from gas-fired power plants consequently declined sharply as well because the high gas prices make it unprofitable. EU data show that the clean spark spread fell to below -€19.50 /MW h.
Hard coal imports to Germany rose by 3.4m tonnes (15%) to 25.7m tonnes in the first six months. Extrapolated for all of 2013, this would mean that for the first time since 1957 more than 50m tonnes of hard coal would be imported to Germany. The managing director of the Coal Importer Association, Dr Erich Schmitz, commented on this development: “Of course we would be absolutely delighted by such a high volume of coal imports. However, we must not allow ourselves to be misled about two essential points:
1. The decline in German hard coal mining is making itself felt more and more strongly because it is being compensated by increased imports.
2. If the low electricity wholesale prices resulting from the non-competitive inclusion of the priority feed-in of renewable energies, especially from solar parks, continue, they will constitute a massive threat to the economic existence of hard coal-fired power plants. They can no longer market their electricity profitably on the German market at these prices and profit solely from the export of electricity to countries dominated by power generation from gas-fire d power plants."
This has led the VDKi to affirm its call for a fundamental reform of the compensation for power from renewable sources and for a capacity market for new and existing power plants of all kinds, oriented to a free market and non-discriminatory, immediately after the national election in Germany.
“Otherwise, ” notes Schmitz, “there will be a flood of notifications of shut-downs of older coal- and gas-fired power plants to the Federal Network Agency which could result in a substantial risk for the security of power supply in Germany in 1 to 2 years.”
-Power generation from hard coal-fired power plants in Germany rose by an estimated 5 TWh to about 65 TWh.
-According to data from the AGEB, hard coal consumption for power generation rose by 8.5% to 21.8 million TCE.
-According to data from the AGEB, gross power export rose by 8.4% in comparison with the same period of the previous year to 35.96 TWh; less imports, there is still an export surplus of 15.4 TWh, generated primarily in hard coal-fired power plants.
Source: Verein der Kohlenimporteure (Germany Coal Importers Association)
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Friday, 02 August 24
COAL MARKET DEVELOPMENTS: FALLING PRICES AMID RECORD-HIGH OUTPUT - WORLD BANK
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Tuesday, 02 July 24
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State-owned NTPC on Monday reported a 15 per cent year-on-year increase in the production of coal from captives mines to 9.862 metric million tonne ...
Friday, 28 June 24
KOSPO INVITED BIDS FOR 400,000 MT OF MINIMUM 4000 NCV COAL FOR FIVE YEARS
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for total 400,000 MT of Low Calorific Value Coal for 5 years starting from July 2024 until ...
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Showing 6 to 10 news of total 6871 |
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- San Jose City I Power Corp, Philippines
- TeaM Sual Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- McConnell Dowell - Australia
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Semirara Mining Corp, Philippines
- Indian Oil Corporation Limited
- Parliament of New Zealand
- Bhoruka Overseas - Indonesia
- SMG Consultants - Indonesia
- Aboitiz Power Corporation - Philippines
- Thai Mozambique Logistica
- Bharathi Cement Corporation - India
- Kartika Selabumi Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Eastern Coal Council - USA
- Semirara Mining and Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Riau Bara Harum - Indonesia
- Ind-Barath Power Infra Limited - India
- PowerSource Philippines DevCo
- Xindia Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- GMR Energy Limited - India
- Timah Investasi Mineral - Indoneisa
- Lanco Infratech Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- GAC Shipping (India) Pvt Ltd
- CIMB Investment Bank - Malaysia
- European Bulk Services B.V. - Netherlands
- Renaissance Capital - South Africa
- Standard Chartered Bank - UAE
- Coal and Oil Company - UAE
- Minerals Council of Australia
- Straits Asia Resources Limited - Singapore
- IHS Mccloskey Coal Group - USA
- Heidelberg Cement - Germany
- Mercator Lines Limited - India
- Sindya Power Generating Company Private Ltd
- Baramulti Group, Indonesia
- Dalmia Cement Bharat India
- Siam City Cement - Thailand
- Africa Commodities Group - South Africa
- ICICI Bank Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Maheswari Brothers Coal Limited - India
- Price Waterhouse Coopers - Russia
- Salva Resources Pvt Ltd - India
- Ministry of Transport, Egypt
- Wilmar Investment Holdings
- Global Green Power PLC Corporation, Philippines
- Chamber of Mines of South Africa
- Antam Resourcindo - Indonesia
- Bhushan Steel Limited - India
- Port Waratah Coal Services - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chettinad Cement Corporation Ltd - India
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Manunggal Multi Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- New Zealand Coal & Carbon
- Indonesian Coal Mining Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Deloitte Consulting - India
- Altura Mining Limited, Indonesia
- Videocon Industries ltd - India
- Jaiprakash Power Ventures ltd
- Ambuja Cements Ltd - India
- Global Coal Blending Company Limited - Australia
- Indogreen Group - Indonesia
- PNOC Exploration Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Georgia Ports Authority, United States
- Electricity Generating Authority of Thailand
- Intertek Mineral Services - Indonesia
- Uttam Galva Steels Limited - India
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- Samtan Co., Ltd - South Korea
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
- Commonwealth Bank - Australia
- Latin American Coal - Colombia
- Sojitz Corporation - Japan
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Edison Trading Spa - Italy
- LBH Netherlands Bv - Netherlands
- Energy Link Ltd, New Zealand
- Banpu Public Company Limited - Thailand
- Globalindo Alam Lestari - Indonesia
- Mintek Dendrill Indonesia
- Petron Corporation, Philippines
- Aditya Birla Group - India
- Sical Logistics Limited - India
- Orica Mining Services - Indonesia
- Global Business Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Power Finance Corporation Ltd., India
- GN Power Mariveles Coal Plant, Philippines
- Anglo American - United Kingdom
- Meralco Power Generation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bangladesh Power Developement Board
- Star Paper Mills Limited - India
- ASAPP Information Group - India
- Borneo Indobara - Indonesia
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- Sarangani Energy Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Marubeni Corporation - India
- Bukit Baiduri Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- The State Trading Corporation of India Ltd
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Bhatia International Limited - India
- Australian Coal Association
- Bayan Resources Tbk. - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- The Treasury - Australian Government
- Singapore Mercantile Exchange
- Siam City Cement PLC, Thailand
- Kaltim Prima Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Formosa Plastics Group - Taiwan
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
- SMC Global Power, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Interocean Group of Companies - India
- Kepco SPC Power Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Kideco Jaya Agung - Indonesia
- Bulk Trading Sa - Switzerland
- Goldman Sachs - Singapore
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Makarim & Taira - Indonesia
- Merrill Lynch Commodities Europe
- Carbofer General Trading SA - India
- Eastern Energy - Thailand
- Medco Energi Mining Internasional
- CNBM International Corporation - China
- Electricity Authority, New Zealand
- Orica Australia Pty. Ltd.
- South Luzon Thermal Energy Corporation
- Trasteel International SA, Italy
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Grasim Industreis Ltd - India
- White Energy Company Limited
- Savvy Resources Ltd - HongKong
- Kohat Cement Company Ltd. - Pakistan
- Indika Energy - Indonesia
- Malabar Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Parry Sugars Refinery, India
- London Commodity Brokers - England
- Mercuria Energy - Indonesia
- Central Electricity Authority - India
- GVK Power & Infra Limited - India
- The University of Queensland
- Madhucon Powers Ltd - India
- Sree Jayajothi Cements Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Mines - Canada
- India Bulls Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Romanian Commodities Exchange
- Gujarat Sidhee Cement - India
- Kapuas Tunggal Persada - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Vedanta Resources Plc - India
- Simpson Spence & Young - Indonesia
- SN Aboitiz Power Inc, Philippines
- Coalindo Energy - Indonesia
- Rio Tinto Coal - Australia
- Coastal Gujarat Power Limited - India
- Attock Cement Pakistan Limited
- MS Steel International - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Binh Thuan Hamico - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Cement Manufacturers Association - India
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- Thiess Contractors Indonesia
- Economic Council, Georgia
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