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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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Friday, 14 November 14
U.S. WEEKLY COAL OUTPUT SLIPS SLIGHTLY WEEK ENDING NOVEMBER 08
COALspot.com – United States the world's one of the largest coal producers, produced approximately 18.9 million short tons (mmst) of coal ...
Friday, 14 November 14
MORE NATURAL GAS FROM RUSSIA TO HELP STABILISE CHINA PRICES - FITCH RATINGS
COALspot.com: Fitch Ratings has said possible additional natural gas supplies from Russia's OAO Gazprom to China via the Altai pipeline would h ...
Thursday, 13 November 14
SLOWER AND LOWER HAS BEEN THE TREND OF THE PANAMAX IN BOTH HEMISPHERES - FEARNLEYS
Handy
We are experiencing an oversupply of tonnage in the Atlantic which is out numbering the amount of cargoes, Fearnleys broker says in its lat ...
Thursday, 13 November 14
DRY BULK MARKET'S REBOUND HINGES ON IRON ORE OVERSUPPLY ISSUES MOVING FORWARD - HELLENIC SHIPPING NEWS
“One man’s benefit, is another man’s demise” is a phrase which can be used to describe today’s situation in the dry b ...
Thursday, 13 November 14
COAL MINISTER WANTS INDIA TO STOP COAL IMPORTS IN TWO OR THREE YEARS
COALspot.com: India to ramp up coal production to a billion tonnes by 2019 from its current level of 490 million tones. According to Power and Coal ...
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- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- Ambuja Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Georgia Ports Authority, United States
- TNB Fuel Sdn Bhd - Malaysia
- Samtan Co., Ltd - South Korea
- Oldendorff Carriers - Singapore
- Leighton Contractors Pty Ltd - Australia
- Madhucon Powers Ltd - India
- Malabar Cements Ltd - India
- LBH Netherlands Bv - Netherlands
- Cement Manufacturers Association - India
- Price Waterhouse Coopers - Russia
- Gujarat Sidhee Cement - India
- CNBM International Corporation - China
- Africa Commodities Group - South Africa
- Alfred C Toepfer International GmbH - Germany
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Orica Australia Pty. Ltd.
- Sinarmas Energy and Mining - Indonesia
- Indian Oil Corporation Limited
- Indika Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Salva Resources Pvt Ltd - India
- Attock Cement Pakistan Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Miang Besar Coal Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- Sindya Power Generating Company Private Ltd
- GN Power Mariveles Coal Plant, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Trasteel International SA, Italy
- Bharathi Cement Corporation - India
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- McConnell Dowell - Australia
- Carbofer General Trading SA - India
- PetroVietnam Power Coal Import and Supply Company
- Kartika Selabumi Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- Orica Mining Services - Indonesia
- GAC Shipping (India) Pvt Ltd
- Bukit Baiduri Energy - Indonesia
- Interocean Group of Companies - India
- Toyota Tsusho Corporation, Japan
- Energy Link Ltd, New Zealand
- White Energy Company Limited
- Kohat Cement Company Ltd. - Pakistan
- Borneo Indobara - Indonesia
- Kideco Jaya Agung - Indonesia
- Wood Mackenzie - Singapore
- Wilmar Investment Holdings
- Goldman Sachs - Singapore
- Petron Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Tata Chemicals Ltd - India
- Meenaskhi Energy Private Limited - India
- Minerals Council of Australia
- TeaM Sual Corporation - Philippines
- Commonwealth Bank - Australia
- Coalindo Energy - Indonesia
- Port Waratah Coal Services - Australia
- Ceylon Electricity Board - Sri Lanka
- Bukit Makmur.PT - Indonesia
- Altura Mining Limited, Indonesia
- Marubeni Corporation - India
- Uttam Galva Steels Limited - India
- Banpu Public Company Limited - Thailand
- Mercator Lines Limited - India
- GMR Energy Limited - India
- Jindal Steel & Power Ltd - India
- Coal and Oil Company - UAE
- Deloitte Consulting - India
- Sarangani Energy Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- IEA Clean Coal Centre - UK
- Global Coal Blending Company Limited - Australia
- Parliament of New Zealand
- Bangladesh Power Developement Board
- Bhoruka Overseas - Indonesia
- VISA Power Limited - India
- Simpson Spence & Young - Indonesia
- Ministry of Mines - Canada
- Videocon Industries ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ICICI Bank Limited - India
- Romanian Commodities Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Asmin Koalindo Tuhup - Indonesia
- Bhatia International Limited - India
- Dalmia Cement Bharat India
- Mintek Dendrill Indonesia
- MS Steel International - UAE
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
- Siam City Cement - Thailand
- International Coal Ventures Pvt Ltd - India
- PowerSource Philippines DevCo
- Xindia Steels Limited - India
- Coastal Gujarat Power Limited - India
- Ministry of Finance - Indonesia
- Sojitz Corporation - Japan
- Indonesian Coal Mining Association
- Eastern Coal Council - USA
- PTC India Limited - India
- Vedanta Resources Plc - India
- Chamber of Mines of South Africa
- Edison Trading Spa - Italy
- Maharashtra Electricity Regulatory Commission - India
- Semirara Mining Corp, Philippines
- Standard Chartered Bank - UAE
- Intertek Mineral Services - Indonesia
- India Bulls Power Limited - India
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- The University of Queensland
- Australian Commodity Traders Exchange
- Bhushan Steel Limited - India
- Essar Steel Hazira Ltd - India
- Manunggal Multi Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mercuria Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Kobexindo Tractors - Indoneisa
- Ministry of Transport, Egypt
- ASAPP Information Group - India
- Latin American Coal - Colombia
- Pendopo Energi Batubara - Indonesia
- Vizag Seaport Private Limited - India
- New Zealand Coal & Carbon
- Timah Investasi Mineral - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- Cigading International Bulk Terminal - Indonesia
- European Bulk Services B.V. - Netherlands
- SN Aboitiz Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Straits Asia Resources Limited - Singapore
- Semirara Mining and Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Baramulti Group, Indonesia
- Medco Energi Mining Internasional
- OPG Power Generation Pvt Ltd - India
- Lanco Infratech Ltd - India
- Electricity Authority, New Zealand
- Anglo American - United Kingdom
- Thiess Contractors Indonesia
- Directorate Of Revenue Intelligence - India
- IHS Mccloskey Coal Group - USA
- Therma Luzon, Inc, Philippines
- Global Business Power Corporation, Philippines
- Tamil Nadu electricity Board
- Krishnapatnam Port Company Ltd. - India
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Central Java Power - Indonesia
- Parry Sugars Refinery, India
- Bukit Asam (Persero) Tbk - Indonesia
- Mjunction Services Limited - India
- Iligan Light & Power Inc, Philippines
- Merrill Lynch Commodities Europe
- Globalindo Alam Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Central Electricity Authority - India
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Gujarat Electricity Regulatory Commission - India
- South Luzon Thermal Energy Corporation
- Formosa Plastics Group - Taiwan
- Billiton Holdings Pty Ltd - Australia
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- Indian Energy Exchange, India
- Maheswari Brothers Coal Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- SMC Global Power, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Power Finance Corporation Ltd., India
- The Treasury - Australian Government
- Thai Mozambique Logistica
- Aditya Birla Group - India
- GVK Power & Infra Limited - India
- Riau Bara Harum - Indonesia
- Agrawal Coal Company - India
- SMG Consultants - Indonesia
- Rashtriya Ispat Nigam Limited - India
- The State Trading Corporation of India Ltd
- Rio Tinto Coal - Australia
- Economic Council, Georgia
- Ind-Barath Power Infra Limited - India
- Sical Logistics Limited - India
- Binh Thuan Hamico - Vietnam
- Australian Coal Association
- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Singapore Mercantile Exchange
- Bayan Resources Tbk. - Indonesia
- Kumho Petrochemical, South Korea
- Barasentosa Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Heidelberg Cement - Germany
- Indogreen Group - Indonesia
- Electricity Generating Authority of Thailand
- Sakthi Sugars Limited - India
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- Jaiprakash Power Ventures ltd
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